Jet Orders Affirm Demand for Widebody Aircraft Amid Ongoing Supply Chain Challenges

Recent aircraft orders at the UK's Farnborough Airshow underscored the robust demand for widebody jets, but supply chain issues continue to hinder manufacturers Boeing and Airbus from meeting their delivery commitments. During the event, Boeing secured 94 twin-aisle orders, including 50 787s and 44 777s, while Airbus garnered 67 widebody orders, consisting of 42 A330neos and 25 A350-900s.

Both companies anticipate significant growth in the global fleet of widebody planes by 2043, projecting totals of 7,980 for Airbus and 8,750 for Boeing. This expected growth is primarily fueled by rising demand in Asia and the Middle East.

Airbus outperformed Boeing in narrowbody orders, securing 97 compared to Boeing's 24, largely due to a substantial order from Saudi airline Flynas for 75 A320neos. Overall, Airbus and Boeing collectively received 282 new orders, marking the lowest tally of announced orders at Farnborough or Paris airshows in over a decade. Airlines are cautiously placing new orders due to delays in fulfilling existing commitments.

Supply chain disruptions, originating from the Covid-19 pandemic, continue to challenge major aerospace manufacturers. Issues are now concentrated on cabin equipment, heat exchangers, aerostructures, and engines. Engine suppliers are particularly affected, with Boeing experiencing reduced LEAP-1B engine deliveries, impacting 737 Max production, which in turn affects Airbus' A320neo deliveries powered by the CFM LEAP-1A. Additionally, Pratt & Whitney's PW-1100G-JM engines face groundings to replace compromised high-pressure turbine and compressor disks.

Boeing also anticipates reduced 787 Dreamliner output due to heat exchanger sourcing issues. However, Collins Aerospace, a subsidiary of RTX, is increasing production to meet Boeing's needs. Boeing aims to maintain a production rate of 10 Dreamliners per month by 2026, while Airbus has set a target of 12 per month by 2028. In the first half of the year, Airbus delivered 21 A350s and 13 A330s, compared to Boeing's 22 787s and seven 777s.

While bullish market attitudes are on hold for the rest of 2024, the long-term outlook remains positive. The anticipated growth in widebody aircraft production will drive demand for non-ferrous metals and advanced materials such as titanium, aluminum, cobalt, chromium, molybdenum, superalloys, and composites, which are essential for various aerospace applications.

* Includes all orders announced by Boeing and Airbus during the Paris Airshow — including firm orders, MoUs, previously undisclosed or tentative agreements, options and initial agreements