Market Intelligence: -Airline Aircraft Orders

Aircraft Manufacturer Airbus Provides 2024 Guidance Update

  • A320 ramp-up trajectory adjusted to reflect specific supply chain challenges in a degraded operating environment; around 770 commercial aircraft deliveries now expected in 2024; target production rate of 75 A320 Family aircraft a month maintained and now expected to be reached in 2027
  • 2024 guidance updated

Amsterdam, 24 June 2024 – Airbus SE is providing a market update to report on new developments related to its space activities and commercial aircraft business, the impact of which is leading the Company to update its 2024 guidance.

In the first half of 2024, the Space Systems management team conducted an extensive technical review of all programmes, identifying further commercial and technical challenges. On that basis, the Company has decided to record charges of around € 0.9bn in the H1 2024 accounts. These are mainly related to updated assumptions on schedules, workload, sourcing, risks and costs over the lifetime of certain telecommunications, navigation and observation programmes.

In commercial aircraft, Airbus is facing persistent specific supply chain issues mainly in engines, aerostructures and cabin equipment. The Company now intends to deliver around 770 commercial aircraft in 2024 and continues to ramp up towards a rate of 75 A320 Family aircraft per month, which is now expected in 2027.

Accordingly, Airbus is updating its 2024 guidance.

As the basis for its updated 2024 guidance, the Company assumes no additional disruptions to the world economy, air traffic, the supply chain, the Company’s internal operations, and its ability to deliver products and services.

The Company’s 2024 guidance is before M&A.

On that basis, in 2024, the Company now targets to achieve:

  • Around 770 commercial aircraft deliveries;
  • EBIT Adjusted of around € 5.5 billion;
  • Free Cash Flow before Customer Financing of around € 3.5 billion.

The Company’s half-year results will be disclosed on 30 July 2024.

Source: Airbus

Related Posts

Airbus Announces Commercial Aircraft Orders and Deliveries for the Month of May 2024

In May 2024, European aircraft manufacturer Airbus:

  • Delivered 53 aircraft to 34 customers
    • 1 A220-100
    • 5 A220-300
    • 19 A320neo
    • 22 A321neo
    • 2 A330-900
    • 3 A350-900
    • 1 A350-1000
  • Secured 27 orders
    • 7 A321neo
    • 20 A330-900
  • Year to date Airbus has delivered 256 aircraft to 58 customers.

AFM Team Note – kindly contact us for a detailed excel breakdown of orders and deliveries by airline.

See last month’s order here.

Source: Airbus
Photo Credit: Airbus

Related Posts

World’s Largest ACMI Provider and Aviation Conglomerate Avia Solutions Group Records 26% Revenue Growth in Q1 2024

Avia Solutions Group, the world’s largest ACMI provider (Aircraft, Crew, Maintenance, and Insurance) services and owner of global pilot training group BAA Training, announced its financial performance results for Q1 2024. The Group’s revenue grew by 26%, reaching €508.8 million. The growth was primarily driven by a significant increase in passenger flight volumes – the Group’s revenue from passenger aircraft ACMI services grew 2.3-fold, reaching €216 million.

The Group’s EBITDA stood at €11.9 million, while its net losses comprised €97.5 million, meeting the overall expectations for Q1. These results were mostly due to investment into fleet capacity and crew, in preparation for a record-breaking summer season, as well as to strategic expansion in new markets.

During the first quarter of this year, the Group expanded its fleet with 13 new aircraft, bringing the total to 171 passenger and 42 cargo aircraft. Even though, in the aviation industry, the first quarter of any given year is typically considered not as profitable, the Group’s entire fleet, which today encompasses 213 aircraft, has already been leased to major European and international airlines, including Lufthansa Group, Turkish Airlines, Wizz Air, TUI, IndiGo, among others.

“We are now fully prepared for the summer season, which we expect to break all previous records. The Group’s aviation services infrastructure and global scale give us a significant competitive advantage and the status of industry leaders,” said Jonas Janukenas, CEO of Avia Solutions Group.

Avia Solutions Group is consistently implementing its expansion strategy in Asia, Asia-Pacific, and South America, which enables it to efficiently manage seasonality in Europe by shifting aircraft from one region to another. Early in Q1 2024, the Group acquired the Australian airline Skytrans, and is planning to establish ACMI airlines in Brazil, the Philippines, Thailand, and Malaysia later this year.

Based in Ireland, Avia Solutions Group operates in 68 countries around the world, and has offices in Lithuania, New York, Dubai, Dublin, and other cities around the globe. The Group consists of 100+ companies providing a wide range of aviation services like aircraft maintenance and repair (MRO), pilot and crew training, ground handling, and more. The Group’s team encompasses 12,000 highly qualified aviation professionals.

Source: Avia Solutions Group

Related Posts

Mexico’s State Owned Airline Places June 2024 Order for 20 Narrowbody Aircraft

Mexicana de Aviación, Mexico’s state-owned carrier, has ordered 20 Embraer E2 aircraft. The deal is for 10 E190-E2 and 10 E195-E2 jets. Deliveries will begin in 2Q25. Mexicana will configure the E190-E2 with 108 seats, and the E195-E2 with 132 seats – both in a single class layout.

Mexicana will be the first E2 operator in Mexico, benefitting from the E2’s low operating costs and fuel efficiency, highlighting Mexicana and Embraer’s commitment to sustainability, and improving the efficiency of aviation.

With this strategic decision the Mexican state airline will grow and modernize its fleet, strengthening domestic and international connectivity to offer affordable and comfortable air travel, with the highest standards of safety and service.

Priscilla Doro Solymossy, VP Sales and Marketing, Head of Latin America and the Caribbean, Embraer Commercial Aviation, said, “We welcome Mexicana to the E2 family, the first E2 operator in Mexico. Seeing the success and rapid growth Mexicana has achieved since it restarted operations in December 2023 has been remarkable. The airline is already flying to 18 destinations, and has transported more than 115,000 passengers, accumulating more than 3,280 flight hours in this short period, reflecting Mexicana’s commitment to operational excellence and customer service.”

About Mexicana de Aviación

The airline is part of the Olmeca-Maya-Mexica S.A. de C.V. Airport Group, Railway, Auxiliary and Related Services, and restarted operations on December 26, 2023. Its purpose is to improve the quality and coverage of air services, as well as promote connectivity, to be an engine of growth, development and competitiveness at the national level.

About Embraer 

A global aerospace company headquartered in Brazil, Embraer has businesses in Commercial and Executive aviation, Defense and Security, and Agricultural Aviation. The company designs, develops, manufactures, and markets aircraft and systems, providing Services and Support to customers after-sales. Since it was founded in 1969, Embraer has delivered more than 8,000 aircraft. On average, about every 10 seconds an aircraft manufactured by Embraer takes off somewhere in the world, transporting over 145 million passengers a year. Embraer is the leading manufacturer of commercial jets with up to 150 seats and the main exporter of high value-added goods in Brazil. The company maintains industrial units, offices, service, and parts distribution centers, among other activities, across the Americas, Africa, Asia, and Europe.

Source: Embraer
Photo Credit: Embraer

Related Posts

Saudia Group Signs Largest Aircraft Order in Saudi Aviation History

Saudi Group announced the largest aircraft deal in Saudi aviation history with Airbus during the first day of the Future Aviation Forum 2024 held at the King Abdulaziz International Conference Center in Riyadh under the patronage of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud. This landmark agreement encompasses 105 confirmed aircraft and marks a significant moment not only for the Saudi aviation industry but also for the wider MENA region. The ceremony, in the presence of His Excellency the Minister of Transport and Logistics Services and Chairman of Saudi Arabian Airlines Corporation, Engr. Saleh Al-Jasser, was attended by dignitaries, country ambassadors, and key figures from the global aviation sector, as well as a multitude of media representatives and industry experts specializing in travel, aviation, and transportation.

The deal, signed by H.E. Engr. Ibrahim Al Omar, the Director General of Saudia Group, and Benoît de Saint-Exupéry, Executive Vice President Sales of the Commercial Aircraft Business, includes A320neo and A321neo models. These aircraft will be distributed between Saudia and flyadeal, the group’s low-cost carrier. Saudia will acquire 54 A321neo aircraft, while flyadeal will receive 12 A320neo and 39 A321neo aircraft.

The new aircraft directly support Saudia Group’s objectives to connect the world with the Kingdom, aligning with several key pillars of Saudi Vision 2030. These include the transportation and logistics objective to increase guests’ capacity to 330 million and expand destinations to 250 by 2030, and the tourism objective to attract 150 million visits by 2030.  This is in addition to the Hajj and Umrah objective to contribute to the increase of Umrah pilgrim capacity to 30 million by 2030.

These modern aircraft boast a spacious cabin with a stylish interior design. They’re equipped with the latest amenities and technology, ensuring a truly differentiated travel experience that prioritizes Saudia guests’ comfort and privacy whilst delivering an exceptional service. Furthermore, the A320 family aircraft are fuel efficient as it emits 20%  less fuel burn and carbon emissions compare to previous generation aircraft.

To ensure the new aircraft are always in top condition, Saudia Technic, the group’s Maintenance, Repair, and Overhaul (MRO) arm, will provide comprehensive maintenance services.  This will prove even more crucial with the upcoming completion of the MRO Village at King Abdulaziz International Airport in Jeddah, significantly increasing the company’s service capacity.

H.E. Engr. Saleh Al-Jasser, the Minister of Transport and Logistics Services, said: “The aviation sector is grateful for the tremendous support provided by the country’s leadership. This agreement is one of the enablers of achieving the objectives of the National Transport and Logistics Strategy. It will contribute to enhancing the operational performance of Saudia, increasing flights and seat capacity, and launching new destinations. Furthermore, it aims to connect the world to the Kingdom in line with the significant transformation witnessed by the aviation sector under Saudi Vision 2030, while also reaffirming our commitment to providing the best services that enhance the travel experience.”

H.E. Engr. Ibrahim Al-Omar, Director General of Saudia Group, said: “Saudia has ambitious operational objectives to meet growing demand. We are increasing flights and seat capacity across our existing 100+ destinations on four continents, with plans for further expansion. The progress of Saudi Vision 2030 is attracting more visits, tourists, entrepreneurs, and pilgrims each year. This motivated our decision to secure this significant deal, which will create jobs, increase local content, and contribute to the national economy.”

Benoît de Saint-Exupéry, Executive Vice President Sales of the Commercial Aircraft business said: “The new additions of the A320neo family aircraft will play a vital role in contributing to Saudi Arabia’ ambitious Vision 2030 plan. It will enable Saudia Group’s strategy to  advance the Kingdom’s aviation capabilities while enabling both airlines to benefit from the A320neo Family’s exceptional efficiency, superior economics, highest level of passenger comfort as well as lower fuel-burn and emissions.“

The ceremony marked a new chapter for Saudia, unveiling their largest investment ever in guest experience. This includes a first-of-its-kind AI-powered “Travel Companion”, to support guests through trip planning to after sales support. Business class cabins will be transformed into luxurious, privacy-focused suites that convert into flat beds, progressively rolling out across both existing and new fleets. Guests can also stay connected with high speed in-flight connectivity and enjoy unparalleled entertainment with the highest-definition screens soon to be on board.

Source: Saudia Group

Related Posts

Saudia Group Orders 105 Airbus A320neo Aircraft to Support Saudi Arabia’s Aviation Goals

Riyadh, Saudi Arabia, 20 May 2024 – Saudia Group, represented by Saudia, the national flag carrier of the Kingdom of Saudi Arabia, and flyadeal, the group’s low-cost carrier, has signed a firm order for an additional 105 A320neo Family aircraft. The order comprises 12 A320neo and 93 A321neo aircraft. This increases Saudia Group’s Airbus aircraft order backlog to 144 A320neo family aircraft.

The agreement was announced at the Future Aviation Forum in Riyadh in the presence of H.E. Saleh bin Nasser AIJasser, Minister of Transport and Logistic Services of the Kingdom of Saudi Arabia, H.E. Engr. Ibrahim Al-Omar, Director General of Saudia Group and Benoît de Saint-Exupéry, Executive Vice President Sales of the Commercial Aircraft business.

H.E. Engr. Ibrahim Al-Omar, Director General of Saudia Group, said: “Saudia has ambitious operational objectives to meet growing demand. We are increasing flights and seat capacity across our existing 100+ destinations on four continents, with plans for further expansion. The progress of Saudi Vision 2030 is attracting more visits, tourists, entrepreneurs, and pilgrims each year. This motivated our decision to secure this significant deal, which will create jobs, increase local content, and contribute to the national economy.”

“The new additions of the A320neo family aircraft will play a vital role in contributing to Saudi Arabia’ ambitious Vision 2030 plan,” said Benoît de Saint-Exupéry, Executive Vice President Sales of the Commercial Aircraft business. “It will enable Saudia Group’s strategy to advance the Kingdom’s aviation capabilities while enabling both airlines to benefit from the A320neo Family’s exceptional efficiency, superior economics, highest level of passenger comfort as well as lower fuel-burn and emissions.”

Saudi Arabia is creating unprecedented opportunities for global aviation through the Saudi National Tourism Strategy, which targets more than 150 million tourists by 2030. This order with Airbus will play a significant role in strengthening the Kingdom’s ambition of becoming one of the top global tourism destinations.

The A320 Family is the world’s most popular single aisle aircraft having won over 18,000 orders from over 300 customers in all markets. The A321neo is the largest member of Airbus’ A320neo Family, offering unparalleled range and performance. By incorporating new generation engines and Sharklets, the A321neo brings a 50% noise reduction and at least 20% fuel savings and CO2 reduction compared to previous generation single-aisle aircraft, while maximizing passenger comfort in the widest single-aisle cabin in the sky. As with all Airbus aircraft, the entire A320 Family is already able to operate with up to 50% Sustainable Aviation Fuel (SAF). Airbus aims for all its aircraft to be capable of operating with up to 100% SAF by 2030.

Source: Airbus

Related Posts