Airbus raises forecast
The demand for long-haul aircraft is increasing, and many airlines are modernizing their fleets accordingly. For Airbus, two factors look optimistic for the future. However, cost-saving measures are also expected to run in the background.
According to Airbus estimates, the global aircraft fleet is projected to grow significantly in the next 20 years, with a particular focus on long-haul aircraft, which have seen increased demand following the coronavirus pandemic. Airbus anticipates that the total number of passenger and cargo aircraft in service will reach 48,230 by 2044, an increase of over 100% from current levels. Of these, 41,490 will be passenger aircraft, representing a 4% increase over previous projections.
Many airlines are modernizing their long-haul fleets, with particularly strong growth expected in Asia and the Middle East, led by India and China. Bob Lange, Airbus' market analyst and prognosticator, stated, "We see particularly strong growth in Asia and the Middle East, led by India and China." The domestic air traffic in China is projected to surpass that of the United States.
Airbus anticipates the greatest growth in long-haul aircraft demand, with a projected increase of 9% to 8,290 aircraft due to double-digit growth in North and South America. However, there are reportedly excess capacities in the Middle East, where a large number of long-haul aircraft have been ordered recently.
Does a cost-cutting program reduce costs?
Short-haul aircraft, such as the Airbus A320 and Boeing 737, still make up the bulk of the market. These aircraft benefit from extended ranges, allowing them to be used on longer routes, such as across the Atlantic. The certification of the Airbus A321XLR, designed for long-haul use, is expected soon, while Boeing is working on a longer-range version of the 737 MAX. Airbus forecasts a 3% growth in the short-haul segment, reaching 33,510 aircraft in the next 20 years.
Airbus analysts have revised their cargo aircraft demand forecasts upwards by 2% to 940 units, following the cargo market boom during the coronavirus crisis.
Airbus' aircraft division has reportedly implemented a performance program with cost-saving and headcount reduction plans, codenamed "LEAD." According to industry sources, the program aims to lower costs and increase revenues. Airbus aircraft CEO Christian Scherer clarified in a staff memo that it was not a formal layoff program. There are no cost caps. Airbus remains committed to its existing strategy. Airbus confirmed the existence of the performance program but did not comment further on internal memos.
Airbus Group is actively involved in the economy of aircraft construction, as they anticipate a significant growth in the global aircraft fleet, with a focus on long-haul aircraft, which is beneficial for airlines looking to modernize their fleets. Following this predicted growth, Airbus has implemented a performance program, codenamed "LEAD," to lower costs and increase revenues within its aircraft division.
With the increasing demand for long-haul aircraft, Airbus forecasts a 9% growth in the sector, making it a key area of focus for the company. This expected growth includes orders of long-haul aircraft in regions like Asia and the Middle East, where countries such as India and China are seen to have particularly strong growth.
