Outlook for Airbus

Airbus has revised upwards its estimates for the number of new aircraft deliveries over the long term, despite softening market conditions. Its latest Global Market Forecast (GMF) predicts a need for 34,900 commercial aircraft out to 2036, which is 1,829 more aircraft than in its last GMF a year ago. Airbus predicts Asia-Pacific will receive 41% of new deliveries, Europe 20% and North America 16%, and sees demand for more than 34,170 passenger aircraft (widebodies and narrowbodies) and 730 freighters. The forecast contrasts with the recent slowdown in aircraft sales. Airbus won 73 net orders in January-May, less than half of the 162 net orders in the same period in 2016. The company expects deliveries will outpace orders in 2017, a reflection of both rising output and reduced demand as operators absorb aircraft purchased during busy years of buying activity.