Boeing (Bachelor’s) And Airbus (EADSY) on a few more orders at the Paris Air Show Wednesday, after their big announcements in the previous days. Boeing stock fell near a buy point.
“So far, there hasn’t been much new in terms of orders” at the airshow, Bank of America analyst Ronald Epstein wrote in a research note Wednesday. The analyst said major announcements, such as Boeing and Airbus’ order for Air India, had been announced in advance.
Analysts at ThirdBridge, a research firm, described orders for new aircraft at the show as “all but irrelevant” in the short to medium term. And as supply chain challenges continue, deliveries remain a focus, they said.
X
Aircraft manufacturers, as well as jet engine suppliers, RTX (RTX) And General Electric (GE), continuing to highlight strong demand forecasts, offsetting production and adoption issues.
India was in the spotlight at the air show, which concludes on Sunday. Air India and its economic rival IndiGo have made headlines amid strong growth in the air travel market in that country.
Boeing and Airbus report orders
On Wednesday, Boeing announced a total of eight new aircraft orders from Indian start-up Akasa Air, Air lease (AL) and Luxair.
This followed news on Tuesday that Air India had completed a previously reported order of up to 290 new Boeing aircraft, including the 737 MAX and 787 Dreamliners. Airline giant Dow Jones said Air China also confirmed orders for eight 787 Dreamliners, while Air Algérie confirmed orders for eight 737 Max aircraft.
Boeing’s European competitor Airbus announced on Wednesday that charter company Avulon has signed a non-binding agreement to buy 20 A330neo aircraft.
Airbus said on Tuesday that Air India has confirmed a pre-order for 250 aircraft, including 210 narrow-body A320/A321s and 40 A350s. The company also confirmed orders for 25 A321s from Mexican ultra-low-cost airline Volaris.
Airbus on Monday unveiled an order for 500 A320 narrow-body jets from IndiGo, the largest commercial aircraft deal ever. A Reuters report back in March said India’s Indigo was as well Consider the Boeing 737 MAX as an option After purchasing narrow bodies exclusively from Airbus until now.
Commercial aviation continues to pick up pace after the severe pandemic hit air travel. Boeing’s new 2023 Commercial Market Estimates, released Sunday, indicate that global airlines will need 42,595 new aircraft through 2042 — an increase of 1,425 from what it predicted last year.
Boeing Stock
Boeing stock lost 0.4% to 211.60 in the stock market today, down for the second day in a row. BA stock briefly surpassed 221.33 buy-ins from a steady base last week but struggled to advance.
Airbus shares fell 1.3 percent on Wednesday, after several days of gains. EADSY stock recently cleared 34.85 entry points and is in a buy range.
Aviation supply chain challenge
Aircraft makers are racing to ramp up production to meet strong demand from airline customers. Supply problems persist, including for top sellers Boeing and Airbus — the 737 MAX and A320neo, respectively, both narrow-body jets.
Suppliers GE and RTX are fixing durability issues with their Leap and GTF engines for those aircraft.
During this week’s airshow, GE and RTX highlighted improvements in their Leap and GTF software. RTX also announced its rebranding from its previous name, Raytheon Technologies.
Pratt & Whitney, a jet engine unit of RTX, said it was seeing “strong progress” in the aviation supply chain, Reuters reported Wed.
But the supply chain is stabilizing at “weak levels,” Bank of America analyst Epstein warned in his note Wednesday to clients.
The Covid-19 pandemic and the Russo-Ukrainian War caused major supply bottlenecks. The shortage of raw materials and labor remains a challenge.
GE stock rose 0.8% to 104.88 on Wednesday, after hitting a five-year high on Friday. RTX stock rose 1.3% to 98.93.
Soul Aviation Systems (SPR), which makes the fuselage for the Boeing 737 Max, is almost unchanged at 29.56. SPR stock fell 4.4% on Tuesday.
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