Airbus Soars Ahead at Paris Air Show
At the Paris Air Show in Le Bourget, the world’s largest aerospace trade fair, European aircraft manufacturer Airbus significantly outperformed its American rival Boeing. From Monday through Thursday, Airbus, together with its airline partners, announced firm orders and preliminary agreements for more than 250 aircraft. Some of these deals had been previously disclosed or partially recorded, but the overall volume marks a clear success for the European manufacturer.
In stark contrast, Boeing failed to secure a single new order during the same period. The American firm, which continues to grapple with safety and reputational issues, faced renewed scrutiny after a Boeing 787 “Dreamliner” crashed in India just days before the event. Although investigations are still ongoing, early findings suggest a possible technical malfunction.
Major Deals Drive Airbus Momentum
One of the standout contracts at the ongoing air show, which concludes on Sunday evening, was a firm order from Riyadh Air, the new state-owned airline of Saudi Arabia. The carrier placed an order for 25 Airbus A350-1000 jets, currently the largest model in the Airbus line-up following the discontinuation of the double-decker A380.
Additional orders came from Avilease, a Saudi aircraft leasing company, while Vietnam’s Vietjet signed a preliminary deal for 100 aircraft. Airbus also made gains in Eastern Europe, with Poland’s national airline LOT ordering 40 units of the A220, the smallest aircraft in the Airbus family. These diverse deals underscore the company’s strong global appeal across various market segments.
Dividend Strategy Signals Confidence
In addition to its commercial success, Airbus announced plans to increase its dividend payout ratio. The company intends to distribute up to 50% of its net profit to shareholders, up from its previous target range of 30–40%. The move reflects Airbus’ robust financial health and long-term growth ambitions, with the manufacturer aiming for sustainable dividend increases in the years to come.
Airbus also reaffirmed its financial outlook for 2025. The firm expects adjusted earnings before interest and tax (EBIT) to reach approximately €7 billion, a notable rise from €5.35 billion in the previous year. It is also targeting a cash conversion rate of around 1 over a five-year horizon—an important metric that illustrates the efficiency of turning profits into free cash flow.
Following the announcements, Airbus shares rose by about 2% on the Paris stock exchange, reflecting investor confidence in the company’s performance and future prospects.
Boeing Faces Challenges Amidst Setbacks
While Airbus celebrates new orders and financial optimism, Boeing remains in a precarious position. The lack of deals at Le Bourget further highlights the challenges facing the US manufacturer, which continues to reel from the consequences of past safety issues and production delays. The recent Dreamliner incident has only added to the company’s woes, raising further questions about reliability and trust.
A €21 Billion Advantage
According to Airbus, the total value of new orders announced during the event exceeds $21 billion. This includes major purchases from Riyadh Air, as well as commitments from Vietjet, Taiwanese carrier Starlux, and Poland’s LOT. With a strong presence in both narrow-body and wide-body segments, Airbus has solidified its lead at this year’s trade show.
The contrast between the two aviation giants could not be clearer. While Airbus builds on its market momentum and financial resilience, Boeing faces the pressing task of regaining customer confidence and securing future deals.