Airbus finalized agreements with Japan Airlines and Virgin Atlantic for plane purchases at the Farnborough Airshow. Qatar Airways also hinted at potentially placing a large order for wide-body jets by late 2024 or early 2025. Airbus and Boeing, facing production constraints, are expected to see limited deal-making during this year’s showcase event in the aviation industry.
Several airlines reporting weak results have raised concerns about a potential slowdown in the post-pandemic travel boom. However, jet makers insist that this hasn’t yet impacted demand for planes.
Japan Airlines recently confirmed an order for 20 Airbus A350-900s and 11 A321neo jets, valued at approximately $3 billion based on estimated delivery prices from Cirium Ascend. In March, the airline announced plans to purchase 21 wide-body A350s and 11 A321neo narrow-body jets. However, the current order is for 20 A350s, with one serving as a replacement for a jet lost in a January collision with a Coast Guard aircraft.
Virgin Atlantic has expanded its fleet with an additional seven Airbus A330-900s, valued at approximately $807 million according to estimates from Cirium Ascend. This order supplements the airline’s original purchase of A330neos in 2019, bringing its total A330neo fleet to 19 aircraft. Reuters indicated recently that Virgin Atlantic was nearing the final stages of securing this supplementary order for A330neos.
During the event, Qatar Airways CEO Badr al Meer announced plans to finalize a significant new order of wide-body jets by the end of this year or early in the first quarter of 2025. Additionally, he mentioned that the airline had opted to extend the operational lifespan of its Airbus A380 fleet and would proceed with upgrades, including the installation of new WiFi systems.
Airlines are increasingly considering extending the service life of their current aircraft as aircraft manufacturers face challenges in meeting their backlog of orders.
Bain consultancy said that airlines were experiencing the longest delays ever for engine maintenance due to the shortage of new aircraft, which is increasing their expenses.
Sean O’Brien, CEO of British Airways, emphasized during the air show that his airline maintains a careful oversight on new plane deliveries. He noted that currently, their aircraft are arriving within the expected timelines, ensuring operational continuity.