Cancellations cut into Airbus and Boeing order books

The order books of Airbus and Boeing are suffering this year from large numbers of cancellations, with 127 lost orders between the manufacturers this year, including 79 dropped from Airbus' order book. Shares in Airbus parent EADS were 0.3% lower yesterday, while Boeing shares were down 0.5%.

Airbus has 169 gross orders this year - including ILFCs recent order for 100 A320neos - but cancellations have dragged net orders down to 90. Boeing, which has suffered from more cancellations than its rival over the past few years, has 159 gross orders, but 48 cancellations have cut net orders to 109. With the Paris Air Show coming in Jul-2011, Airbus and Boeing have strong prospects for more ordering to come.

While orders may be suffering, Airbus and Boeing are pushing jets out at record rates. Airbus has delivered 167 aircraft through to the end of Apr-2011. Boeing lags only a little behind, with 141 deliveries. The pace of deliveries is expected to pick-up speed through the year, with Airbus and Boeing raising narrowbody output and Boeing raising B777 production. The second half of the year will be vital for Boeing, with the first B787 due to go to All Nippon Airways in Sep-2011 and the first B747-8 deliveries due to Cargolux in over summer 2011.

Selected aerospace suppliers share price movements (% change): 05-May-2011