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Airbus continues to lead Boeing in 2005

Analysis

SYDNEY (Centre for Asia Pacific Aviation) - Airbus has edged out Boeing for the fifth consecutive year, reporting a record 1,055 net orders in 2005, against Boeing's 1,002.

Airbus also out-delivered Boeing for the third consecutive year, with 378 aircraft (76% of which were single-aisle A320 Family aircraft).

Boeing vs Airbus: Total Worldwide Aircraft Deliveries 2001-2006F

Source: Centre for Asia Pacific Aviation

2005 was an extraordinary year for both aircraft manufacturers logging the equivalent of over three years of sales in 12 months. (In the four years prior to 2005, Boeing and Airbus averaged 296 and 331 orders per year respectively).

Boeing vs Airbus: Total Worldwide Aircraft Orders 2001-2005

Source: Centre for Asia Pacific Aviation

Airbus attributed the record-breaking year to airlines that are "very optimistic about the future of air transportation, with also a lot of new carriers emerging and bringing cheap air travel to an increasing number of consumers. But it also reflects the need for more modern equipment to face the rising fuel prices".

Another surge in the price of oil above USD66 per barrel overnight further weakens the profit outlook for airlines. With most of the major carriers in Asia making substantial orders in 2005 (though Singapore Airlines is expected to confirm its fleet plans shortly), the outlook for orders in 2006 is expected to be far more subdued than in 2005.

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