After a four-year hiatus, the Paris Air Show is back, and the global aviation industry descends on Paris once again for the biggest industry showcase. The event begins officially on June 19, and airlines and leasing companies are already scrambling to replenish their order books as they brace for a robust post-pandemic recovery. Ryanair Holdings Plc, Air India, and new Saudi airline Riyadh Air are some of the companies that have already made big-ticket purchases and commitments and may consider further orders during the expo.
Aviation consultant IBA's chief economist Stuart Hatcher estimates that this year's airshow might produce about 2,100 orders and commitments. Carriers like Air France-KLM, Delta Air Lines Inc., or Malaysian Airlines Bhd may consider making deals, but deliveries may still be hampered by strained supply chains, causing many customers to lock in orders now. Narrowbody jets by Airbus SE and Boeing Co. are already sold out until the end of the decade, making it increasingly difficult to find widebodies flown on global routes that are more popular than ever as various countries drop travel restrictions.
Hatcher emphasizes that the orders being placed are not for the 2020s but rather the 2030s, but the optimism is underpinned by recovery that the International Air Transport Association predicts will see global airlines earning a collective profit of $9.8 billion this year. Last year, at the Farnborough expo in the UK, orders and commitments for aircraft reached only about a third of the almost 1,500 sold at the same show in 2018.
Delta Air Lines is expected to place a big Airbus wide-body order to restore post-Covid networks and replace older planes, while Saudi Arabian startup carrier Riyadh Air will unveil its new livery and detail its launch plans at a gala on Sunday night. Air France-KLM is shopping for replacements for some of its Airbus A330 and Boeing 777 jets that average 20 years old, and Air Canada could seal a deal for as many as 20 Boeing 787 Dreamliners, as it looks to renew and expand its long-haul fleet. IndiGo, the world's largest operator of the A320, could order 500 A320 series narrowbody jets and 25 widebody planes, while Japan's two largest airlines may purchase aircraft from Airbus and Boeing.
While other carriers are also working to pin down deals, those may not materialize at the show. They include a record 600 plane order from Turkish Airlines and a follow-on order from Emirates, the world's biggest long-haul carrier, for as many as 150 aircraft. The Paris Air Show is not only an opportunity to place orders, but manufacturers will also showcase civil and military aircraft, and executives will tout new technologies such as flying taxis and electric propulsion as the industry pushes toward decarbonization.