Airbus Predicts a Lot More Planes Will Sell in the Next 20 Years
Airbus is going to have a pretty good next couple of decades.
That's what the European aircraft manufacturer predicted on Friday when it raised its 20-year forecast of plane demand by more than 7% to a total of 37,400 jets, worth $5.8 trillion at list prices.
Driving demand for Airbus are the smaller regional C Series jets it has partnered with Bombardier to produce. The jets, which seat 110 to 130 flyers, represent about 76% of all aircraft it will deliver over the next 20-year period. That's about 28,550 deliveries worth $3.2 trillion.
Airbus' rival Boeing is also trying to get a slice of that market, by striking a similar deal for regional jets with Embraer on Thursday.
The increased demand for Airbus jets is partly driven by Western markets' need to replace aging aircraft, while strengthening economies in developing markets push those countries to enter the plane buying arena.
The boom comes as the airplane builder is finally recovering from lagging deliveries of its A320neo single-aisle jets. An engine shortage on those aircraft snarled Airbus' production operations for the past two years. But now the manufacturer is making a dent in the delivery backlog, shrinking its number of undelivered jets from 100 down to 86 in June alone.
Airbus is considering raising its future production goals to 70 jets per month. That would be a significant increase from its 2019 target of 60 aircraft per month.