IBA analyses performance at Farnborough Airshow 2018 – firm orders may be low but the year has a long way to go.
Dr Stuart Hatcher, Chief Operating Officer and Head of Valuations, Mike Yeomans, examine the outcomes in narrow and widebody sectors and observe a surge in orders for regional jets as the market reacts to pent up demand. Key take outs include:
- We recorded a total of 996 Firm / MoU orders, this was very close to our prediction of 908 prior to the show.
- For the second time in a row, Boeing pushed past Airbus in the final result, 489 and 459 (includes CSeries) respectively. Other orders included 37 for Embraer, 4 for Bombardier and 7 achieved by ATR.
- New aircraft orders show a strong correlation to the cost of oil, although traffic demand itself still underpins it.
- It was a little surprising to see the lack of Lessor orders, accounting for only 23.9% of the Firm/MoU orderbook, compared to 47.2% recorded for last year.
- Freighter orders were strong, a notable appearance this year was the orders for for the 747Fs, signaling the growth in the heavy freight market.