Boeing and Airbus Face Low Order Levels at Major Air Show
- Airbus and Boeing have reported low order levels during a major air show, signaling potential challenges in their production forecasts for the coming months.
- Airbus is set to release its quarterly results on Tuesday, followed by Boeing's results on Wednesday.
- The industry appears to be facing a slow recovery post-pandemic, impacting demand for new aircraft.
FARNBOROUGH, England — The aviation industry is grappling with significant production challenges as both Boeing and Airbus report difficulties in ramping up aircraft manufacturing following the pandemic. This week, the two aerospace giants are set to unveil their quarterly results, with Airbus reporting a 56% drop in adjusted profit due to issues in its space division. The Farnborough Airshow, which recently concluded, highlighted the absence of massive airplane orders, with both companies facing criticism for failing to meet commitments regarding timely and predictable deliveries. At the air show, Boeing secured 96 orders and commitments, while Airbus managed to garner 266, a stark contrast to the 826 orders recorded at the previous Paris Air Show. Notably, Korean Air's order for up to 50 Boeing wide-body planes, including the 777X, stood out amidst the subdued order environment. As travel demand rebounds, airlines like United Airlines and Air India have increased their jet orders, yet the overall enthusiasm for new aircraft appears tempered. Boeing's presence at the air show was notably subdued, as the company focused on addressing ongoing safety and manufacturing issues rather than showcasing its commercial aircraft. The company aims to increase production of its Max planes to 38 per month, with investors keenly awaiting updates on these targets. Meanwhile, both companies are facing a shortage of skilled workers, prompting calls for wage adjustments to attract new talent to the aerospace sector.