In a remarkable feat, Airbus SE has shattered its own sales record in 2023, securing over 2,000 net orders as airlines raced to meet the skyrocketing demand for fuel-efficient aircraft in the wake of the pandemic. The European aircraft manufacturer clocked in an impressive 2,094 net orders, with major deals from prominent carriers like India's IndiGo and Air India, as well as a significant purchase announced by Turkish Airlines in December. Airbus also outpaced its annual delivery target by completing 735 handovers, well above the projected 720 deliveries.
This exceptional sales performance sets a new benchmark for Airbus, surpassing its previous record set in 2014 on a gross order basis. Undoubtedly, this period has witnessed one of the most active buying phases in aviation history, driven primarily by the outstanding success of Airbus' A320neo single-aisle aircraft family. However, the company's A350 widebody model, especially the larger -1000 variant, has also been gaining significant traction.
What stands out is the swift and robust recovery of demand for both single-aisle and widebody jetliners, surpassing expectations. Christian Scherer, the CEO for commercial aircraft at Airbus, states that "travel is back, and there is serious momentum." Such resilience and rebound in the industry have resulted in a surge in orders exceeding 100 aircraft, which were once a rarity but are now becoming more commonplace. Both Airbus and its rival Boeing Co. are effectively sold out for the remainder of the decade on their best-selling models. To make matters more challenging, Airbus is already fully booked for widebody deliveries until 2028, leaving no slots available in the near term.
Despite the overwhelming demand, Airbus remains confident in meeting its production ramp-up goals for this year, as indicated by CEO Guillaume Faury during a recent media call. However, supply chain challenges persist, although signs of improvement are visible. The planemaker has repeatedly highlighted the strains faced in the aftermath of the Covid-19 pandemic, but is optimistic about the recovery and expects a more streamlined supply chain in the coming months.
Not to be outdone, Boeing also achieved its highest annual sales total in almost a decade, with 1,456 gross orders, or 1,314 planes net of cancellations and conversions, as announced in a statement earlier in the week. Nonetheless, this achievement has been overshadowed by increased scrutiny surrounding Boeing's workhorse 737 jet. An accident on an Alaska Airlines flight on January 5th has resulted in a partial grounding of the 737 Max 9 fleet, raising concerns and requiring close evaluation.
In conclusion, Airbus has not only set a new sales record but has done so in extraordinary circumstances, thriving despite the challenges brought on by the pandemic. The fervent demand for fuel-efficient aircraft, coupled with the resurgence of travel, has propelled the company to unprecedented heights. With a solid order backlog and production ramp-up on track, Airbus is well-positioned to navigate the evolving landscape of the aviation industry.