Airgenix Blog

Boeing vs Airbus

In this Article we will summarise a bit of stats on the Boeing and Airbus Deliveries and Orders for the last 3 quarters.


Boeing

Boeing continued padding its order backlog in August, though Boeing’s customers continued nixing deals for new jets – a trend ongoing for more than a year – the August figures show Boeing has been able to offset cancellations with new sales contracts. In August, Boeing logged 30 order cancellations and 53 new orders, resulting in positive order growth by 23 aircraft – the 7th straight month. However, positive order growth was offset by 0 B787s delivered since May due to quality problems involving aircraft’s fuselages. Boeing’s 53 August aircraft orders included 35 737 Max and 18 widebody jets. The Max deals included eight jets ordered by US finance company 777 Partners, 12 ordered by Alaska Airlines, five by lessor Griffin Global Asset Management, eight by United Airlines and two by unidentified customers, Boeing says. Boeing’s 18 widebody orders in August included one 777 Freighter ordered by FedEx, 10 777Fs ordered by unidentified customers and seven 787-9s with unidentified buyers.

United ordered eight 737 Max in August, also cancelled eight (Several Boeing customers have in recent months made similar order swaps, doing so as a means of adjusting contract terms, such as delivery schedules). Additionally, unidentified customers nixed another 20 737 Max and Irish lessor Avolon cancelled two 787-9s in August. Boeing delivered 23 aircraft in August, down from 28 deliveries in July. These deliveries included 14 737 Max: two to lessor Air Lease, one Boeing Business Jet received to an unnamed customer, two jets taken by lessor Jackson Square Aviation, one to Ryanair, one to Turkish Airlines and seven to United, Boeing says. Also last month, Boeing delivered two 737NG-based P-8A Poseidon maritime patrol jets – one to the US Navy and one to the Norwegian air force. In addition, manufacturer delivered six widebodies last month: one 767F to FedEx, three 767-based KC-46 tankers to the US Air Force, one 777F to FedEx and one 777F to DHL.

According to information available on (www.flightglobal.com) “Boeing also bolstered its firm backlog by 22 jets in August by tweaking its “ASC-606” accounting bucket. That bucket holds contracted orders that Boeing suspects will not close due to factors including customers’ financial condition. Boeing moved 16 737 Max into the accounting bucket in August – but it also pulled a separate 38 jets (36 737s and two 787s) out, placing those back into its firm backlog. The changes left Boeing’s backlog at the end of August at 4,164 aircraft, up from 4,141 one month earlier. The backlog includes 3,325 737s, 10 747s, 100 767s, 301 777s and 428 787s.” Year to date, Boeing has landed orders for 683 jets and received 403 cancellations, leaving its year-to-date net order activity at positive 280.

Boeing gave an optimistic note with higher industry forecasts citing a recovery in domestic markets, although international travel remains depressed and coronavirus variants and pandemic waves pose potentially new risks. Adding to optimistic news, industry sources said Boeing is close to winning an order for potential 70 to 100 737 MAX jets from India's Akasa, startup founded by billionaire Rakesh Jhunjhunwala. Also, manufacturer remains in a dispute with Irish budget airline Ryanair, one of its biggest customers, over the pricing of a potential order for up to 250 MAX jets as demand for new airliners picks up in Europe. According to (www.reuters.com) “Ryanair says it is not prepared to bow to Boeing's pricing demands amid uncertainty over COVID-19 trends and suspended talks last week”.

Airbus

On the other hand Boeing’s biggest rival Airbus delivered 40 jets in August to bring supplies of its new jets to 424 since the start of the year, remaining on course to meet an annual goal of 600 deliveries that would preserve its position as no.1 aircraft manufacturer. That figure fell in line with typical numbers during a traditionally slow holiday month. Last month’s delivery figures finished well below even a Covid-tainted 2020 and amounted to just 25 percent of September 2019’s benchmark. The European planemaker also sold 269 planes in the first eight months of the year, or 132 after cancellations, company data showed on Tuesday. Airbus sold just one plane in September, a private A319neo, it said in a monthly summary. For the first nine months, it sold 270 planes or a net total of 133 after cancellations. Fresh sales included 28 narrowbody jets to Latam Airlines, though South America's largest carrier simultaneously cancelled an order for two A350-1000 wide-body jets. On deliveries, which drive most aerospace revenues, Airbus remains well ahead of U.S. rival Boeing which is gradually clearing a backlog of undelivered jets following the almost two-year safety grounding of its 737 MAX.


In conclusion Airbus leads rival Boeing on deliveries this year but lags its U.S. rival on new orders as Boeing sold 683 jets or 280 after cancellations and conversions.