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

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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

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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

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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

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