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Plane orders take off but manufacturers still struggle

Paris Air Show: Backlogs build as Airbus and Boeing struggle with supply chains
June 23, 2023

Supply chain strains that are limiting the aerospace industry’s attempts to ramp up post-pandemic production are likely to last for several years, analysts have warned.

Both Airbus (FR:AIR) and Boeing (US:BA) have struggled to meet production targets, which has meant order backlogs have grown to levels that are only just below the records set at the peak of the last cycle, according to Rob Morris, from consultancy Ascend by Cirium.

With order books already stretching into the 2030s, airlines are scrambling to secure planes. On the opening day of this week's Paris Air Show, Indian budget airline operator Indigo placed the biggest single order in aviation history – for 500 of Airbus’s A320 narrowbody aircraft. This follows on from a 470-plane order split between Airbus and Boeing by Air India in February this year and a 300-plane deal between Boeing and Ryanair signed last month.

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