Airbus CEO sees demand continuing to outstrip supply as European plane maker accelerates output and pulls further ahead of Boeing
U.S. plane maker Boeing and European rival Airbus collectively secured over 1,000 firm orders at this year’s Paris Air Show. WSJ’s George Downs explains what these orders can tell us about the state of the duopoly, and the health of the aviation industry.
LE BOURGET, France—Economies are wobbling around the world, but that isn’t deterring travelers clamoring for airplane tickets.
The voracious postpandemic demand for flying doesn’t show signs of cooling soon, according to aviation executives who gathered at this week’s Paris Air Show. They point to recent large aircraft orders such as Indian budget carrier IndiGo’s record 500-jet deal earlier this week.
“There is economic slowdown, but airlines do not see a slowdown of bookings,” said Guillaume Faury, chief executive of Airbus EADSY 1.87%increase; green up pointing triangle, the world’s biggest commercial jet maker. “And they continue to see a very strong demand with high prices.”
That demand has collided with the industry’s limited ability to quickly increase production of planes. Airbus and rival Boeing BA 0.13%increase; green up pointing triangle have faced constraints on the supply of things such as engines, chips and workers. Both have long order backlogs.
Excerpt from WSJ
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