The global aircraft market is entering a robust growth phase driven by strong recovery in air travel post-pandemic, structural shifts toward fuel efficiency, and sustainability imperatives.

Over the next two decades, approximately 45,000 new, fuel-efficient aircraft worth $2.9 trillion are expected to be delivered globally, supporting an average annual passenger traffic growth of 3.7%.

Single-aisle aircraft will dominate deliveries, accounting for 70% of units and 55% of market value, with key models including Airbus A320neo and Boeing 737 MAX families .

The Asia-Pacific region, led by China, is forecasted to be the largest growth driver, with China alone projected to represent 20% of aircraft deliveries by 2040 due to rapid air passenger growth exceeding 6%.

North America and Europe will hold significant shares as well, with North America expected to maintain about 20% of deliveries and Europe about 17% [65a6d821-4ded-4ba5-874a-2aa5ee48ba5e_72581204; bf2732d0-bb7b-4e55-9d35-f1d548672746_296106203].

The Middle East and Latin America, although smaller in volume, offer growth in delivery value due to a concentration of wide-body aircraft .

Leading manufacturers positioning for this demand surge are Airbus and Boeing, which command the largest order backlogs and prioritize next-generation aircraft development, focusing on fuel efficiency, advanced materials, and sustainability technologies such as Sustainable Aviation Fuel (SAF), electric/hybrid propulsion, and digital innovation in maintenance and operations.

Boeing’s 737 MAX and Airbus’s A320neo families dominate narrow-body orders, while wide-body growth is led by Boeing 787 and Airbus A350 models.

COMAC's C919 is gaining ground with 300 confirmed orders primarily supported by domestic Chinese leasing firms, signaling a growing role of Chinese manufacturers in the market [ce100173-e198-486d-9705-b5584a15779f_257721921; 7efb6324-5623-4afe-9ac3-de52e237c9f2_52191629].

Business aviation is also recovering, with deliveries in 2023 surpassing 4,000 units globally for the first time in over a decade.

Major players here include Bombardier, Dassault, Embraer, Gulfstream, and Boeing’s BBJ units.

Growth is driven by demand for premium, long-range, and fuel-efficient private jets, especially in Asia-Pacific and the Middle East .

The general aviation sector is advancing with record backlogs and increased deliveries, highlighting innovation in safety and sustainability-critical technologies .

The regional dynamics show Asia-Pacific leading volume growth fueled by urbanization and expanding middle classes.

Europe shows strong demand for fleet modernization to meet environmental mandates and operational efficiency goals.

North America remains a stable, mature market with steady demand, while the Middle East benefits from emerging carriers expanding international connectivity .

The aircraft leasing market is also expanding, enabling airlines flexibility to scale fleets amid fluctuating market conditions, with major hubs in Europe, North America, and growing interest in Asia-Pacific emerging markets .

Key trends shaping future aerospace demand include a strategic pivot to sustainability via SAF, electric and hybrid propulsion, lightweight composites, advanced digital avionics, and connectivity solutions that enhance passenger experience and enable predictive maintenance.

Governments and regulators are reinforcing policies around carbon emissions reduction, which spur demand for next-generation aircraft and technological innovation [ce100173-e198-486d-9705-b5584a15779f_257721921; 9c84e191-48be-41f5-8cb5-9eedf563dcd3_53958405; 524202a2-9895-4a11-af64-96db15bee7ed_489227355].

Strategic moves by manufacturers illustrate heavy R&D investments in SAF-compatible aircraft and electric propulsion systems, enhanced supply chain resilience post-pandemic, and expanded global footprint targeting emerging demand regions.

Notably, Textron, specializing in military and business aviation sectors, has secured significant defense contracts and is emerging in sustainable aviation fuel (SAF) and electric aircraft segments, positioning for long-term growth amidst industry decarbonization

[d0868668-650b-41ae-bf3a-02d9a523015c_20700738; 1c226a6a-72ce-4f97-9550-28bd7665d3e9_187259902].

The commercial airline segment is navigating operational challenges post-pandemic, including labor shortages and high fuel costs, with carriers like Delta adopting cost-conscious fleet strategies and focusing on fuel hedging and diversified revenue streams to maintain profitability .

In summary, the aerospace sector is poised for steady growth led by fuel-efficient single-aisle aircraft and expanding markets in Asia-Pacific, with Airbus and Boeing as primary beneficiaries, alongside emerging players like COMAC.

The push toward sustainability and innovation in digital technologies will be critical differentiators supporting production ramp-up and mitigating operational risks.

Business and general aviation are also exhibiting solid recovery and technological advancement.

Aircraft leasing continues to be a vital enabler for fleet expansion amid fluctuating demand.

Investors should monitor supply chain normalization, regulatory developments, and manufacturers’ innovation pipelines.

Key risk factors include labor constraints, geopolitical uncertainties, and fuel price volatility, which can impact production and airline profitability.

Overall, aerospace stocks best positioned for long-term growth are those with strong order backlogs, innovation leadership in fuel efficiency and sustainability, and balanced exposure across growth markets and defense contracts [e69bcbbb-8533-4b79-b051-47a3354fef0f_73217340; ce100173-e198-486d-9705-b5584a15779f_257721921; 65a6d821-4ded-4ba5-874a-2aa5ee48ba5e_72581204; 8e828b46-530b-4cdd-8592-110e24dde5a0_841769098; d0868668-650b-41ae-bf3a-02d9a523015c_20700738].

The global aircraft market is entering a robust growth phase driven by strong recovery in air travel post-pandemic, structural shifts toward fuel efficiency, and sustainability imperatives.

Title:

Content: Aircraft Leasing Market Overview by Recent Opportunities, Growth Size, Regional Analysis and Forecasts to 2032

The global aviation industry is experiencing unprecedented growth, fueled by increasing air travel rates and the demand for efficient aircraft. In tandem with this growth, the aircraft leasing market has emerged as a critical component of the aviation ecosystem, providing airlines with flexible leasing options to meet their fleet requirements. A recent report by Report Ocean forecasts that the aircraft leasing market size is poised to exceed USD 453.2 billion by 2026, with a robust growth rate of 6.8% during the forecast period.

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Driving Factors Behind Market Growth

The surge in air travel rates is a primary driver propelling the demand for aircraft leasing. Airlines are opting for leasing arrangements to expand their fleets and meet the escalating demand for air travel. Aircraft leasing offers flexibility and cost-effectiveness compared to outright aircraft purchases, enabling airlines to optimize their fleet size based on fluctuating market conditions.

Aircraft leasing encompasses two primary lease types: dry lease and wet lease. In dry leasing, aircraft are leased without crew members, while wet leasing involves leasing aircraft along with trained crew, maintenance, and insurance. This flexibility allows airlines to tailor leasing agreements to their specific operational needs, further driving the adoption of aircraft leasing.

Additionally, factors such as the growth in global aviation industry, increasing regulations, demand for fuel-efficient commercial aircraft, attractive tax policies, and affordable lease rates contribute to the burgeoning aircraft leasing market. Emerging economies present significant growth opportunities for aircraft leasing, with technological advancements further enhancing the appeal of leasing options.

Regional Insights and Market Dynamics

Europe emerged as the highest revenue-generating region in the aircraft leasing industry in 2019, driven by high disposable income, advanced living standards, and the development of new aircraft. The region witnessed increasing adoption of aircraft leasing due to the operation of efficient commercial aircraft and technological advancements. However, North America is also a significant market for aircraft leasing, with well-established aviation infrastructure and a robust demand for air travel.

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Asia-Pacific is poised to exhibit substantial growth in the aircraft leasing market, propelled by countries such as China, India, and Japan. Rising air traffic, economic development, and increasing demand for air travel in the region contribute to the growing adoption of aircraft leasing. Latin America, the Middle East, and Africa also present lucrative opportunities for market players, driven by factors such as infrastructure development and tourism growth.

Competitive Landscape and Key Players

The global aircraft leasing industry is characterized by the presence of both international and small to medium-sized vendors. Leading companies such as Aviation Capital Group, Boeing Capital Corporation, Air Lease Corporation, and International Lease Finance Corporation dominate the market. These companies continually innovate and collaborate with other industry players to meet the evolving needs of consumers and launch new products to stay competitive.

Segmentation and Market Outlook

The aircraft leasing market is segmented based on lease type, aircraft type, and region. Dry leasing and wet leasing represent the primary lease types, catering to the diverse needs of airlines. Aircraft types include wide-body aircraft and narrow-body aircraft, each serving specific operational requirements. Regionally, North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa constitute the key market segments, offering insights into regional market dynamics and growth prospects.

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Future Outlook and Conclusion

In conclusion, the global aircraft leasing market is poised for significant growth driven by increasing air travel rates, demand for fuel-efficient aircraft, and favorable market conditions. As airlines seek to optimize their fleets and enhance operational efficiency, aircraft leasing emerges as a strategic solution to meet evolving market demands. With technological advancements and infrastructure development, emerging economies present lucrative opportunities for market players. As the aviation industry continues to soar to new heights, aircraft leasing remains a vital component facilitating the expansion and modernization of airline fleets worldwide.

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  • Representative and a price chain probability breakdown
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What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

Over the next two decades, approximately 45,000 new, fuel-efficient aircraft worth $2.9 trillion are expected to be delivered globally, supporting an average annual passenger traffic growth of 3.7%.

Title:

Content: Cirium expects 45,000 more fuel-efficient aircraft to be delivered by 2040, worth $2.9 trillion
Cirium predicts that over the next 20 years, the world will spend $2.9 trillion on about 45,000 new aircraft.
• New aircraft expected to be delivered will replace the ageing fleet to meet projected annual growth of 3.7% in air passenger traffic
Single-aisle jets are expected to account for 70% of passenger aircraft deliveries by 2040
• China is expected to top the list with a 20% share in aircraft deliveries – the region ’ s air passenger growth is expected to exceed 6%
• Around 80% of existing passenger aircraft will be retired between 2021 and 2040
Over 3,500 freighter deliveries over the next 20 years – including new freighters and modified airliners
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An estimated 45,000 aircraft worth U.S. $2.9 trillion to be delivered by 2040.
Revealed in Cirium's new Fleet Forecast.
LONDON -- The newly released 2021 Cirium Fleet Forecast shows that around 45,000 new, more fuel-efficient aircraft will be purchased globally over the next 20 years, with an estimated $2.9 trillion in aircraft purchases.
According to the Cirium Fleet Forecast released by Ascend by Cirium, a consulting firm of aviation analytics firm Cirium, global cumulative aircraft deliveries for the next 20 years will be 4% higher than predicted a year ago by 2040.
The report outlines the positive outlook for the aviation industry and its recovery from the COVID-19 pandemic.
The COVID-19 pandemic has severely affected air travel, as well as aircraft deliveries.
Global aircraft deliveries fell by 43% - or 600 aircraft - in 2020.
Aircraft deliveries recovered somewhat in 2021, but are still 25% below 2019 levels.
Air travel is reopening as global vaccination programs become more widespread, leading to an increase of 300 aircraft deliveries in 2021 — a feat achieved when Boeing 787 was found to be problematic.
Rob Morris, Global Advisory Director, Ascend by Cirium, said: “The Cirium Fleet Forecast 2021 presents an optimistic long-term outlook for the aviation industry, which will return to a more traditional growth trajectory after 2024, although structurally different from before.
Air passenger traffic is expected to grow at an annual rate of 3.7%, so the global passenger fleet will need to increase by almost 22,000 aircraft.
“If the above projections are realized, the global passenger fleet will reach the size of about 47,200 aircraft by the end of 2040. ”
The projected delivery of new aircraft will not only meet the growing demand for air transport, but will also replace older aircraft that are less fuel efficient. "
China leads in aircraft deliveries
The number of aircraft deliveries will vary depending on the region where the airline is located, and the Asian market is expected to be the growth engine.
China is expected to lead the world with more than 6% growth in air passenger traffic – also topping the list in aircraft deliveries, accounting for 20% of the world ’ s total.
China ’ s delivery figures are significantly ahead of all other Asia-Pacific countries, which together account for 22% of the total.
North American carriers are expected to account for 20 percent, while European carriers will account for 17 percent.
The Middle East is estimated to account for 7% of the share, but because the region will deliver a large number of twin-aisle aircraft, it will account for 11% in terms of aircraft value.
Latin America, which is similar to the Middle East, will also account for 7%.
Russia and the Commonwealth of Independent States (CIS) accounted for 4%, and Africa accounted for 3%.
Most of the new deliveries will be single-aisle jets
The fleet forecast report shows that over the next 20 years, single-aisle jets will account for 70% of total aircraft deliveries and 55% of total delivery value.
The total value of newly delivered single-aisle jets is $1.6 trillion.
The mainstream model will still be the 150-seat aircraft, represented by the Airbus A320neo and Boeing 737 Max 8, which will account for 50% of deliveries.
Popular models with more than 180 seats include the A321 neo and the B737 Max 10, which will have an increasing share each year and will account for 40% of deliveries over the next 20 years.
Airbus and Boeing are expected to develop a new generation of single-aisle aircraft in the early to mid-2030s.
The $1.1 trillion dual-aisle aircraft market will be dominated by the B787 and A350 models, with 250-300-seat “medium ” aircraft accounting for about 65% of the total value delivered.
The large passenger aircraft market will be contested by the A350-1000 and the B777-9.
Aircraft deliveries in regional markets are expected to reach a scale of $150 billion.
About a third of them will be turboprop aircraft, based on 70-seat models.
Starting in 2030, a larger 90-seat model will enter the market.
Future new aircraft projects in the market include the MA700 from China and an expected new line of aircraft from Embraer.
Older models will be replaced by a new generation of aircraft.
It is predicted that about 80% of current passenger aircraft will be out of passenger service between 2021 and 2040.
As the airline industry begins to focus on driving down carbon emissions and focusing on sustainability, it will become increasingly important to replace these older, more fuel-efficient aircraft with new models.
Overall, in addition to several relatively new aircraft that are being phased out earlier, around 19,000 aircraft in the global passenger fleet will be phased out by the end of 2020.
According to analysis by Ascend by Cirium, the average economic life expectancy for single-aisle aircraft is 22 years and for twin-aisle aircraft is 20 years.
The number of freighters is growing: including new freighters and refitted freighters
As the global freight industry continues to perform strongly, freighter capacity (based on available tonnage kilometres) is expected to grow by 3.3% over 2019, with a projected supply of around 3,500 freighters over the next 20 years.
Of this total, it is expected that 30 per cent will be new freighters and 70 per cent will be converted from passenger aircraft.
About 1,050 new freighters are expected to be shipped, valued at $121 billion.
More online shopping during the epidemic period has promoted the development of e-commerce, and the growth of e-commerce has promoted the conversion of airliners to freighters.
Modification projects are focused on newer models such as the A321, B737-800, A330 and B777-300ER.
The Cirium Fleet Forecast is an independent outlook report on the global commercial passenger and cargo aircraft market, based on the industry ’ s premier combination of data and years of expertise.
Click here to download the executive summary of the Cirium Fleet Forecast 2021.
About Cirium
Cirium is a company that combines powerful data and analytics services to drive the world ’ s continued growth. With decades of industry experience, Cirium provides clients with expert insights to help companies, aircraft manufacturers, airports, airlines and financial institutions make informed business decisions that shape the future of the travel industry, improve business returns and improve customer experience. RELX PLC is the world ’ s leading provider of information and data analytics to professional and commercial customers across a wide range of industries.
Shares of parent company RELX PLC are traded on the London, Amsterdam and New York Stock Exchanges using the following ticker symbols: London: REL; Amsterdam: REN; New York: RELX.
Visit cirium.com for more information or follow Cirium ’ s LinkedIn account and WeChat account, CiriumCN.
Disclaimer: The original version of this announcement is the official authorized version. The translation is for convenience only. Please refer to the original version, the original version is the only version with legal effect.
Contacts
For media inquiries, please contact:
Cirium Media Team
Rachel Humphries / June Lee
media @ Cirium.com
The PC Agency
Paul Charles / Michael Johnson / Callum McGoldrick
Cirium @ pc.agency
Contacts
For media inquiries, please contact:
Cirium Media Team
Rachel Humphries / June Lee
media @ Cirium.com
The PC Agency
Paul Charles / Michael Johnson / Callum McGoldrick
Cirium @ pc.agency

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

Single-aisle aircraft will dominate deliveries, accounting for 70% of units and 55% of market value, with key models including Airbus A320neo and Boeing 737 MAX families .

The Asia-Pacific region, led by China, is forecasted to be the largest growth driver, with China alone projected to represent 20% of aircraft deliveries by 2040 due to rapid air passenger growth exceeding 6%.

North America and Europe will hold significant shares as well, with North America expected to maintain about 20% of deliveries and Europe about 17% [65a6d821-4ded-4ba5-874a-2aa5ee48ba5e_72581204; bf2732d0-bb7b-4e55-9d35-f1d548672746_296106203].

The Middle East and Latin America, although smaller in volume, offer growth in delivery value due to a concentration of wide-body aircraft .

Title:

Content: Friday, 08 September 2023 05:25 GMT

Global Single-Aisle Aircraft Market Is Projected To Reach The Value Of $222.20 Billion By 2030 X Herald

(MENAFN- Ameliorate Digital Consultancy) According to the latest report by Virtue Market Research, in 2022, the Global Single-Aisle Aircraft Market was valued at USD 86.6 billion and is projected to reach a market size of USD 222.20 billion by 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 12.5%.

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A prominent long-term driver for the Single-Aisle Aircraft market is the growing global demand for air travel. Even though the COVID-19 pandemic had a severe impact on the aviation industry, the long-term trend remains robust. The demand for single-aisle aircraft is fueled by several factors, including the expansion of low-cost carriers, increasing urbanization, and rising middle-class populations in emerging economies.

The COVID-19 pandemic had an unprecedented impact on the aviation sector, leading to grounded fleets, reduced passenger demand, and financial strain on airlines. This setback prompted airlines to rethink their fleet strategies, with some deferring aircraft orders and retiring older aircraft to cut costs. Additionally, the pandemic accelerated the adoption of safety and hygiene measures in aircraft cabins, leading to increased investments in cabin air filtration and touchless technologies.

A notable short-term driver for the Single-Aisle Aircraft market is the rebound in domestic and regional air travel. As countries reopen their borders and vaccination efforts progress, there is a growing preference for shorter flights, leading to increased demand for single-aisle aircraft. Airlines are reactivating grounded aircraft and placing orders for new, fuel-efficient models to meet this surge in regional travel.

An exciting opportunity in the Single-Aisle Aircraft market is the development of next-generation, fuel-efficient aircraft. With a growing emphasis on sustainability and reducing carbon emissions, aircraft manufacturers are investing in research and development to create more eco-friendly models. This includes the use of advanced materials, aerodynamic improvements, and more efficient engines. Airlines that invest in these next-gen aircraft can not only reduce their environmental footprint but also benefit from lower operating costs in the long run.

One of the prominent trends observed in the Single-Aisle Aircraft industry is the rise of digitalization and connectivity. In-flight Wi-Fi, entertainment systems, and integrated passenger services are becoming standard features in modern single-aisle aircraft. Airlines are leveraging these trends to enhance the passenger experience and gain a competitive edge. Additionally, digitalization plays a crucial role in aircraft maintenance and operations, helping airlines optimize their fleet performance and reduce downtime.

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Segmentation Analysis:

The global Single-Aisle Aircraft Market segmentation includes:

By Type of Aircraft: Narrow-Body, Wide-Body, Regional Aircraft

Among these, the Narrow-Body aircraft category stands out as the largest segment. These aircraft are designed for short to medium-haul flights and are favored by airlines for their versatility and cost-efficiency. Narrow-Body aircraft are well-suited for both domestic and international routes, making them the preferred choice for many carriers.

In terms of growth, the Narrow-Body segment takes the lead yet again. The market for Narrow-Body aircraft is witnessing significant expansion due to the increasing demand for regional and domestic travel. Airlines are looking to replace older aircraft with more fuel-efficient and environmentally friendly Narrow-Body models, driving the growth of this segment.

By Engine Type: Turbofan, Turboprop

Among these categories, Turboprop engines are the largest segment. These engines are commonly found in regional aircraft that operate shorter routes and require a different set of performance characteristics compared to their Turbofan counterparts. Turboprop engines are known for their fuel efficiency and reliability, making them a preferred choice for regional carriers.

However, when it comes to growth, Turbofan engines take the lead. The demand for Turbofan-powered Single-Aisle Aircraft is on the rise, driven by the need for higher efficiency, reduced emissions, and greater operational range. Airlines are increasingly opting for Turbofan engines in their narrow-body aircraft to meet the growing demand for longer-haul regional and international flights.

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Regional Analysis:

The Single-Aisle Aircraft market spans across variregions, including North America, Europe, Asia-Pacific, South America, and the Middle East & Africa. Each of these regions has its unique characteristics and influences on the market.

Asia-Pacific emerges as the largest region in this segment. This region encompasses numerfast-growing economies, a burgeoning middle class, and a robust travel and tourism industry. As a result, airlines in Asia-Pacific have been expanding their fleets to meet the increasing demand for air travel. With a foon domestic and regional routes, narrow-body aircraft have been particularly favored in this region, contributing to its leadership in the Single-Aisle Aircraft market.

In terms of growth, Europe takes the lead. Despite being a mature aviation market, Europe is experiencing a surge in demand for narrow-body aircraft, primarily due to the need for more fuel-efficient and environmentally friendly options. European airlines are increasingly looking to modernize their fleets with state-of-the-art single-aisle aircraft, thereby driving the growth of this segment in the region.

The Middle East & Africa region also shows promise in terms of growth, driven by the emergence of airlines in the Middle East as major global players. These airlines are expanding their networks and investing in modern, fuel-efficient narrow-body aircraft to meet the growing demand for long-haul travel.

North America, with its well-established aviation industry, continues to be a significant market for single-aisle aircraft. While it may not be the fastest-growing region, North America remains a stable and vital market for these aircraft, catering to both domestic and international routes.

South America, although a smaller market compared to the other regions, also contributes to the demand for single-aisle aircraft. Airlines in South America are focusing on modernizing their fleets to enhance operational efficiency and reduce emissions.

Latest Industry Developments:

  • One of the key strategies adopted by companies is a strong emphasis on fuel-efficient and environmentally friendly aircraft. With the aviation industry facing increasing pressure to reduce carbon emissions, manufacturers are investing in the development of next-generation single-aisle aircraft with improved fuel efficiency. This includes the use of advanced materials, aerodynamic design enhancements, and the incorporation of more fuel-efficient engines. Furthermore, there is a growing trend towards the electrification of aircraft systems, including electric taxiing systems and more electric aircraft architectures. These innovations aim to reduce the overall carbon footprint of single-aisle aircraft, aligning with global sustainability goals.
  • To enhance their market share, aircraft manufacturers are expanding their global reach and customer base. They are targeting emerging markets with fast-growing air travel demand, such as Asia-Pacific and the Middle East. These regions represent significant opportunities for fleet expansion, especially with narrow-body aircraft designed for short- to medium-haul routes. Another trend is fleet modernization. Airlines, particularly in mature markets like North America and Europe, are retiring older aircraft and replacing them with state-of-the-art single-aisle aircraft. This trend is driven by the need to improve operational efficiency, reduce maintenance costs, and enhance passenger comfort. Manufacturers that offer the latest technology and fuel-efficient options have a competitive advantage in this regard.
  • Connectivity and digital solutions are becoming increasingly important in the aviation industry. Airlines are seeking aircraft equipped with advanced connectivity options to enhance the passenger experience, provide in-flight entertainment, and enable seamless inteaccess. Manufacturers are responding by integrating cutting-edge connectivity solutions into their single-aisle aircraft offerings. Additionally, the use of data analytics and predictive maintenance has gained prominence. Airlines are leveraging data from their aircraft to optimize operations, reduce downtime, and lower maintenance costs. Aircraft manufacturers are incorporating these features into their products to meet the demand for data-driven solutions.

About Us:

Virtue Market Research stands at the forefront of strategic analysis, empowering businesses to navigate complex market landscapes with precision and confidence. Specializing in both syndicated and bespoke consulting services, we offer in-depth insights into the ever-evolving interplay between global demand and supply dynamics. Leveraging our expertise, businesses can identify emerging opportunities, discern critical trends, and make decisions that pave the way for future success.

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Leading manufacturers positioning for this demand surge are Airbus and Boeing, which command the largest order backlogs and prioritize next-generation aircraft development, focusing on fuel efficiency, advanced materials, and sustainability technologies such as Sustainable Aviation Fuel (SAF), electric/hybrid propulsion, and digital innovation in maintenance and operations.

Title:

Content: The General Aviation Manufacturers Association (GAMA), the trade association that represents business and general aviation manufacturers, says in 2023 deliveries of general aviation (GA) aircraft rose to more than 4,000 for the first time in more than a decade.

“When compared to 2022, all aircraft segments saw increases in shipments and preliminary aircraft deliveries were valued at $27.8 billion, an increase of 3.6%,” the group said on 21 February as it published its annual full-year figures for unit deliveries and billings.

Source: Bombardier

Business and general aviation manufacturers boosted sales and deliveries in 2023

In addition to the strong sales figures, GAMA statistics show that there are “robust and growing order backlogs for all segments of aircraft”, says GAMA chief executive Pete Bunce.

“This is a testament to the resilience of our industry and the integral role that general and business aviation plays in our communities.”

Manufacturers delivered 3,050 fixed-wing aircraft, up from 2,799 the previous year. Piston aircraft deliveries rose 11.8% from 2022’s figures to 1,682 aircraft, while turboprop aircraft deliveries rose 9.6% and business jet deliveries climbed 2.5%.

The value of the aircraft rose to $23.4 billion, up 2.2% from $22.9 billion in 2022.

The preliminary value of helicopter deliveries for 2023 was $4.4 billion, an increase of approximately 11.2%, GAMA says. 962 units were delivered, versus 876 in the previous year.

More than two-thirds of the aircraft went to North America, with 12% going to Europe and 6.6% to Asia. Latin America accounted for 7% of the deliveries.

That said, the companies – like their commercial aircraft peers – are also facing supply chain issues, labour shortages as well as increased regulatory oversight, GAMA says. In addition, efforts at curtailing business and general aviation are mounting, especially in Europe, where sensitivity to factors that accelerate climate change is high.

“As civil aviation’s innovation incubator, our entire GA industry is focused on new aircraft and technologies that will lead the way in safety and sustainability for the entire aviation sector,” Bunce says. “This progress is dependent on having effective, predictable and accountable regulatory processes, and a supportive business environment.”

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What impact shall the carbon tax to be imposed by EU in 2026 have on airlines?

They will accelerate the demand for aircraft replacement.

What is Airbus doing to achieve sustainable aviation?

It is working on adopting innovative strategies.

It is making efforts to improve aircraft efficiency.

Boeing’s 737 MAX and Airbus’s A320neo families dominate narrow-body orders, while wide-body growth is led by Boeing 787 and Airbus A350 models.

Title:

Content: 6 / 28 Hot Spots in the Market
Today ’ s (6 / 28) hot focus stocks are as follows, for reference only:
(1) Buy more than expected Chinese auto show smile
After the Chinese car (2204) opened higher on Wednesday (6 / 28), it was not easy to small, and the market price at 9: 47 am was tentatively reported at 96.5 yuan, up 7.34%, returning to the five-day line and the monthly line, and performing well.
This year, the car market is expected to buy more than expected! The car manufacturers are optimistic about the second half of the year to continue to improve the sales target of the whole year, and continue to repair the HYUNDAI and LEXUS sales volume of Sanyang Hyundai and Hetai cars. sales throughout the year.
After returning to Taiwan last year, MG launched HS 1.5T Flagship Edition and HS PHEV Power Edition successively. The monthly delivery volume has been growing all the way. In order to meet the market demand, the Chinese car production line has applied for relocation for a new era. The car's target.
With the HS 2.0T AWD flagship version listed in March also began delivery in June, with increased production capacity, the legal person estimated that MG in May after the license reached 1032 vehicles, June should be able to further grow to a new monthly license high, MG HS car series will be stable in the domestic medium-sized SUV market sales runner-up.
Since China MG will also launch another new cross-boundary SUV in September, and the performance of the brand in May and June is better than expected, with the new car will bring another wave of purchase gas after the listing, China Automobile is optimistic, and the annual sales volume is expected to grow further to 13,000 vehicles compared with the estimated 12,000 vehicles in March.
In fact, in addition to sales performance better than expected, China Motor Vehicle MG production line has begun to make profits in the first half of the year, with the second half of the monthly production capacity to maintain at more than 1000 vehicles, will further promote the growth of China Motor Vehicle revenue.
In addition to applying for migrant workers to join production, the current production line is mainly based on the one-shift overtime system, and Chunghwa says that due to the serious shortage of labor in the market, it will not be planning for a two-shift system in the near future.
With this year 's new car buyout, the current domestic three Yang Hyundai has increased the annual sales of HYUNDAI from 17,300 vehicles to 18,500 vehicles, and the annual sales target of Hetai car repair LEXUS from 23,000 to 30,000 vehicles, and the Chinese car is expected to be repaired twice to 13,000 vehicles. (Business Times Chen Wei, digital editor)
(2) The United States intends to expand the layout of high-speed network in Lei attack
Zhonglei (5388) benefited from the United States to expand investment in high-speed networks, in the multi-structure supply chain imagination space, after this high, the desire to small is not easy, the early market rose to 105.5 yuan, as of 9: 54 am provisional market price of 103 yuan, still up 6.74%.
It is understood that US President Joe Biden announced a network plan of more than $42 billion on the 26th, which aims to make high-speed Internet available to every American family by 2030.
Biden used this to promote the policies he promoted during his tenure, paving the way for the next presidential re-election, and the market interpreted that the policy has a positive impact on the development of Internet stocks such as Zhonglei in the supply chain of Taiwan stocks.
Telecom broadband equipment manufacturer Zhonglei recently held a general meeting of shareholders, which passed a private placement plan, hoping to introduce strategic investment partners, improve operational efficiency, and accumulate momentum for the next stage of operational growth.
Wang Wei, chairman of Zhonglei, said that with the network becoming indispensable in life, the rapid transformation of digital transformation leads to innovative business models, and the global government actively invests in infrastructure to drive the demand for Netcom equipment.
In addition, Zhonglei has mastered key technologies and provides a full range of solutions such as optical fiber access equipment, DOCSIS Cable products, commercial network equipment, 5G FWA fixed network wireless access equipment, 5G small base stations and video streaming equipment.
(Zheng Shu-fang, Chen Yi-jun, Digital Editor, Business Times)
(3) Hot focus stocks in the market:
1. Zhong Qi (2419): Benefiting from the US Broadband, the company will face a large order, the stock price is fast rising and stopping price is 30.05 yuan, creating a high band, and the volume is increased by more than 10 times.
2. Gao Lin (2906): Foreign investors have been selling for days, but the stock price is still rising, and the price of shares is still rising. This morning, the pursuit of buying orders poured in, and the explosion stopped at 19.55 yuan, rewriting the band's new high on February 21.
3. Dongtai (4526): New products to enhance energy saving, collect carbon footprint data, July 5 ex-dividend, interest rate 0.2 yuan, buy card sharp stop.
4. Good power (2462): Q3 into the peak season, this year the gross profit margin is estimated to have jumped significantly, the volume of the attack stopped, and another wave of high.
5. Liande Holdings - KY (4912): Obtained orders from AI server manufacturers, and this year ’ s operation has been rising quarter by quarter.
6. Jiang Shen (1525): The bus frame in hand orders nearly a thousand, the current production capacity is full to the end of the year, this year the industry will be high season, yesterday foreign capital to buy more than 103, the beginning of the surge stopped, jumped over the 5 day line.
7. Wufu (2745): retaliatory tourism after the epidemic, this year's operation is bullish, the stock price rose to a new high.
Hetai Car (2207): Decided to pay a profit of 2.2 yuan, optimistic that the scale of the car market this year is better than 450,000 vehicles, and the stock price was flat at the beginning of the session.
9. South Asia Branch (2408): today the interest rate, opening reference price of 68.7 yuan, the stock price rose to 70.3 yuan, stride towards the road of interest filling.
China (2204): intends to increase MG sales for the second time in the whole year, the stock price rebounded by more than 3.5% at the beginning of the session, surpassing the 5 day line and the sword month line.
11. Daewoo Capital (6111): Entering the Indian market has been lackluster, falling by more than 6.5% at the beginning of the session
Sun Moon Investment Control (3711): Chief Operating Officer Wu Tianyu pointed to a slower than expected recovery in demand, but the crisis is a turnaround, and the stock price is under pressure.
13. Yilong (2458): Q2 pull the strength of the heat, revenue is expected to be better than financial estimates, stock price to maintain 100 yuan.
MediaTek (2454): Dong Zong Cai Mingjie visited the Ministry of Land Industry and Information Technology this week to discuss semiconductors and 5G, and the stock price rose slightly.
15. Xia Du (2722): Profit of 1.25 million yuan since May, net profit of 0.01 yuan per share after tax, stock price fell.
16. Li Cheng (6239): Disposal of the shares of Suzhou Plant to JiangboLong, the expected disposal interest is equivalent to NT $2.384 billion, can contribute more than NT $3 EPS, is expected to be recognized before the end of the year.
The stock price is flat.
17. Zhiyuan (3035): The operation will resume growth, HSBC, KGI shouted to buy, the stock price is more than 200 yuan high-grade strong finishing.
18. Evergreen Airlines (2618): The third season of summer vacation season is coming, this year's operation is challenging new highs, foreign investment is overbought, and the stock price stands at 40 yuan.
19. Sichuan Lake (2059): Foreign investment confidence is low to buy, and Taiwan stocks are high 100 points to assist, and the market hit a stop.
20. Jian Zhen (2421): High-end fan solutions shipped smoothly, performance can be expected this year, early hit 90 yuan, strong 5 days online.
21. Haiyundian (6203): H2 revenue, profits increased year by year, recently, the total of 984 shares bought in a row of four, and continued to attack above 100 yuan, up 3%.
22. Jinbao (2312): Today's interest rate, up 3%, take the upper stock rebound train, go to fill the interest road.
23. Cathay Gold (2882): Divided interest rate of $0.9 today, by foreign investors sold 2, the morning market to fill the interest road small steps.
24. Weichuang (3231): Joint attack on AI, HPC and automotive business opportunities, invested 1 billion shares in the world core, re-listed in the 80 yuan and 5 day line high grade area.
25. ADLINK (6166): Edge AI attracted attention, orders took off in the wind, and the volume once shot up 4%, standing on the five-day line.
26. GuangHuanke (3287): The shareholders' meeting was held on the 30th, and the recent operation of foreign capital was excessive, and the sharp attack stopped to catch up with the two-year high.
27. Datong (2371): Foreign investors bought more than 10,000 shares, and the stock price rose nearly 4% at one time, and the sky price was 54.8 yuan.
28. Changjia Intelligence (6841): The cerebral hemorrhage detection system obtained the TFDA secondary medical device license, and the stock price once rushed 102 yuan to close, closing the second half of the line.
29. Odd (3356): Driven by AI craze + performance growth, the stock price rose by about 2%.
30. Taiyao (4746): At the end of July, the Asian Biotechnology Conference attracted popularity, but after the stock price broke the 100 yuan mark, the reverse pressure came out of the cage, and the black fell by about 2.5%.
31. United Regeneration (3576): Invest in TOPCon M10 battery and module, estimated next year Q3 mass production, the stock price rose, close to the monthly line.
(Times Information Lee Hui-lan)
(4) New aircraft orders increased sharply
Zilong Precision (4572) opened three high, all the way steady higher, as of 10: 00 in the morning, the market price tentatively reported 182.5 yuan, an increase of 5.8%, back on the five-day line, the performance is good.
On the 27th, Wang Kunsheng, chairman of Zilong Precision, said at the shareholders' meeting that the company 's orders for products have increased significantly. According to Boeing and Airbus' delivery forecasts this year, and Zilong 's new orders have been gradually developed and entered mass production.
The net profit after tax last year was 184 million yuan, an annual increase of 2.42 times, EPS 5.13 yuan, up from 1.5 yuan the year before.
Mainly benefiting from the rapid recovery of travel business air passenger traffic after the unsealing, the two major aircraft manufacturers Boeing and Airbus have received orders, and the rapid increase in production speed has also led to a steady upward performance of the overall aerospace industry.
Due to the European Union ’ s decision to introduce a carbon tax in 2026, governments and airlines are increasingly focusing on carbon reduction, which is conducive to the sales of new, more fuel-efficient aircraft, and it is expected that the aviation industry will accelerate the demand for replacement aircraft.
According to the order status of Boeing and Airbus in 2021 and 2022, new orders from airlines have increased significantly, especially for narrow-body aircraft such as the B737max and A320.
In addition, according to Boeing and Airbus ’ demand forecasts for new aircraft in the next 20 years, both show stable growth, but currently limited by aerospace supply chain restructuring and labor shortage, the production and supply of aircraft are temporarily limited, and it is generally expected to be improved by the third quarter of next year.
The industry predicts that the monthly production rate of narrow-body aircraft in the fourth quarter of next year may rebound or exceed pre-epidemic levels.
However, Zilong benefited from the benefits of changing orders during the epidemic, and the product categories have increased significantly.
This year, according to the traffic forecasts of the two major aircraft manufacturers, and the company's new product orders have been gradually developed and entered mass production, the company estimates that the performance of Dragon should still be able to increase significantly compared with last year.
Looking after the future city, Zilong has begun planning and building a new factory in Renwu Aerospace Park to advance the layout for the growth period.
(Business Times, Liu Jusong, Digital Editor)
(5) Air Double Male Popular Huaxin GDR Discount Issuance with Volume Kill
Taiwan stocks are now rebounding with the US stocks, focusing on the market returning to the monthly line to challenge the Wanqi level, and the aviation duo have once again become the top five most popular stocks, and AI index stock Weichun is also in the top five stocks.
In addition, Huaxin (1605) is now issuing additional common shares to participate in the issuance of overseas depository certificates, which is equivalent to about NT $40.22 per share.
Evergreen Airlines (2618) currently ranks first in the trading volume of listed stocks, with close to 65,000 shares traded in the opening hour.
Benefiting from the arrival of the summer peak season in the third quarter, coupled with the recovery of tourism opportunities after the epidemic, high ticket prices and the decline of oil prices in the second quarter, it is expected that the second and third quarters of the operation will continue to improve.
China Airlines (2610) also benefited from the post-epidemic travel opportunities, increased airfares and lower oil prices.
On Tuesday, foreign investors bought more than 10,000 Super China Airlines, and backhand bought 4418 Super Evergreen Airlines. Both stocks rose more than 3% this morning, and Evergreen Terminal returned to the 40 yuan level.
Huaxin, which has the second largest trading volume of the listed shares, is now issuing additional common shares to participate in the pricing of the issue of overseas depositary certificates, which is equivalent to about NT $40.22 per share.
Foreign investors have sold more than 75,484 copies to Huaxin for six days on Tuesday, and only one day in the past 14 days, with a total of 118,850 copies sold.
Huaxin has increased its participation in the issuance of overseas trust certificates (GDRs), raising nearly US $390 million, or about NT $12.06 billion. The issue price per share is 40.22 yuan. Compared with the closing price of 43.55 yuan on the previous day (27 day), the price difference is about 7.6%. A drop of about 5%.
Huaxin announced this morning a cash increase in the issuance of common shares to participate in the issuance of overseas depository certificates; the total amount of overseas depository certificates issued is US $389.1 million, and the issuance price of overseas depository certificates is US $12.97 per unit; the overseas depository certificate issued 30 million units, commending 300 million ordinary shares; the scheduled issuance date is June 30, 112.
1 Unit of overseas depository certificate recognizes 10 shares of common stock of the company, which is equivalent to about NT $40.22 per share (converted to US $1 = NT $31.008).
Huaxin said that the fundraising will be used to purchase raw currency to strengthen the financial structure.
This cash capital increase of 300 million ordinary shares to participate in the issuance of overseas depository certificates, the dilution ratio of the original shareholders' equity is about 7.44%, will not cause a significant dilution of the original shareholders' equity, and after the capital increase benefits appear, it should have positive benefits for future development, and there should be no adverse impact on the shareholders' equity.
US stocks stopped falling and rebounded, Huida surged 3.06%; Taiwan stock AI index stock Weichuang (3231) counterattacked this morning, and the stock price opened higher, currently rising nearly 1.8% to about 81 yuan.
In addition, Datong (2371), which has been continuously overbought by foreign investors, continues to take the lead and hit new highs in the band. It is also listed in the top five trading stocks of listed stocks. (Times Information Shen Peihua)
(6) Biden opens the red carpet of the Golden Mouth Spread Coin Netcom Stock Exchange
Netcom community is encouraged by Biden 's US $42 billion investment in broadband infrastructure, including Huaxing (4979), Yuzhi (6470), Desheng (8048), Zhongqi (2419), and Plaid (6263). Zhonglei (5388), Xingtong (3025), Unixin (6426), Text (4906), Mingtai (3380) KASUS (8059), Shen Zhen (3558), Vantage (6190) and other large gains and half of the board jumped, pushing the Netcom category to occupy the top of the list of various stocks.
US President Joe Biden has fought hard for broadband infrastructure, announcing a network plan of more than US $42 billion to make high-speed Internet available to all US households by 2030, thereby promoting domestic policies and paving the way for the next presidential election.
The states are expected to put forward preliminary plans later this year, and the US government will release 20% of the funds, and it is estimated that the balance will be allocated in 2025, which will encourage the Internet communication community including Huaxing (4979), Yuzhi (6470), Desheng (8048), Zhong Qi (2419) and other bright lights to stop.
In addition to the stable monthly revenue, the major network companies including Zhibang (2345), Zhonglei (5388), Zhong Qi (2419), Ming Tai (3380) and others have recorded double-digit revenue growth in the second half of the year. It is expected to maintain the growth pace.
Zhonlei (5388) reported revenue of 26.18 billion yuan in May, an annual increase of 18.1%, a record high for the same period. Due to the strengthening of digital infrastructure in all countries, the market inventory gradually turned healthy after 4 quarters of adjustment.
Optical module manufacturer Huaxiang (4979) is currently focusing on the application of 70mW CW LD and advanced packaging technology above 400G. The new products drive the performance growth. May revenue was 199 million yuan, an annual increase of 105.22%. In May, the revenue was 816 million yuan, an annual increase of 107.85%. A $100 club for a $100 club.
Zhong Qi (2419) May revenue of 984 million yuan, an annual increase of 10.91%, the previous May revenue of 4.827 billion yuan, an annual increase of 17.59%. Highpoint.
Analysts said that the recent international market in the stock price rose more, will face the institutional evaluation adjustment, short-term is not easy to have a large market, Taiwan stocks will return to the low-base period rotating structure, stock selection to low-base growth stocks as the first choice, optimistic about automotive components, seals, industrial computers, networking, passive components and other sub-industries. (Times Information Long Cailin)
(7) Q2 peak season dynamic energy, Yang Qin and another new high price
The stock price of Yangqin (2755), a chain restaurant group, has risen since this year. Recently, the upward momentum has strengthened again. Today (28), the volume increased by 6.3% to 194 yuan, and the price has reached a new high since the listing.
The three major legal entities yesterday backhand to buy more than 89, so far this week a total of more than 39.
Yangqin benefited from the expansion of the operation scale of the two brands of “McDonald ’ s ” and“ Fried Chicken Lion ”. In line with the adjustment of the structure of “McDonald ’ s ” stores, the net profit after tax in the first quarter of 2023 increased by 45.28% in the quarter, an annual increase of 2.72%.
With the timing gradually entering the peak brunch season and the impact of the epidemic on consumer flow slowing down, Yangqin consolidated revenue of 182 million yuan in May 2023, an increase of 6.48% month-on-month and 16% year-on-year, setting a new record high.
Cumulative consolidated revenue of NT $842 million in May, an annual increase of 13.83%, a new high for the same period, and the second quarter of operation continued to enjoy a good period.
Looking forward to 2023, Yangqin not only continues to expand its stores through effective strategies to enhance its overall revenue and brand impact, but also expands its business performance through five major business strategies.
In addition to continuing the business expansion in the ASEAN region, this year, we also joined hands with our strategic partner, Yarming-KY, to jointly develop the US market through “Fried Chicken and Lion ” and“ Happy Lemon ” to increase the brand ’ s market visibility and influence.
Yang Qin has held a general meeting of shareholders at the end of May to approve the distribution of earnings, and resolved to distribute dividends of 1.6 yuan, 3.7 yuan, and a total dividend of 5.3 yuan.

What does Cirium Fleet Forecast predict about the market share of new aircrafts?

In the next 20 years, Airbus A320 and Boeing 737 Max will account for 50% of deliveries of 150 seat planes.

COMAC's C919 is gaining ground with 300 confirmed orders primarily supported by domestic Chinese leasing firms, signaling a growing role of Chinese manufacturers in the market [ce100173-e198-486d-9705-b5584a15779f_257721921; 7efb6324-5623-4afe-9ac3-de52e237c9f2_52191629].

Title:

Content: China 's largest aircraft C919 orders 300 civil aviation industry reviewer: this is just the beginning
Author: External Submission
Published: Updated:
On the first day of the Zhuhai Air Show on November 8, with the C919 vacated for flight performance, COMAC signed a confirmed order for C919 with a number of domestic leasing companies, with a total of 300 aircraft.
Civil aviation industry worker, civil aviation commentator Zhang Zhonglin in the "Observer Network" article pointed out that the C919 aircraft project is based on a large enough domestic market for C919 growth, for C919 aircraft on the air show 300 orders is only the beginning.
This article is authorized by the "Observer Network" reprint, the author is civil aviation industry worker, civil aviation commentator Zhang Zhonglin
When China's three airlines signed an order with Airbus for 292 Airbus aircraft, I once predicted that "maybe in the near future, we will see the three airlines once again brush up on the underground C919 super order, and then we may have forgotten today's Airbus super order."
+ 8
The super order of 300 C919 and 30 ARJ21 signed by a number of financial leasing companies at the Zhuhai Air Show today undoubtedly exceeded the number of Airbus orders in July, and also exceeded the 105 ARJ21 orders of the three major airlines in 2019, becoming the largest order ever in China's aviation manufacturing industry.
Although I expected a new confirmed order for the C919 at the Zhuhai Airshow, such a large number still exceeded my expectations.
This unprecedented order is undoubtedly the best adult gift for the C919.
When Shangfei C919 received the model qualification certificate issued by the Civil Aviation Administration of China on September 29 this year, although there were more than 800 intended orders, it was only an intended order, not a definitive order, and the firm order that had been finalized before the Zhuhai Air Show was only five Eastern Airlines.
Xi Jinping met with representatives of the C919 project team and visited the project achievements exhibition. (Xinhua News Agency)
For the C919 that has already received the model certificate, the number of confirmed orders for five is indeed small. If the first C919 will be delivered within this year, the remaining four C919 orders will be completed and delivered in 2023.
Although the initial production capacity of the C919 is very low, the confirmed order for four C919 aircraft is indeed too small for the production line of the aircraft, and the signing of the new confirmed order can be said to be a nail in the plate.
If you refer to ARJ21 ’ s production capacity climbing path, it will take at least 5 years for COMAC to climb the production capacity of the existing production line and slow down the production growth rate to a certain extent after rapidly increasing the production capacity to reach a stable production capacity.
Given that the number of production lines and the planned capacity of the C919 is larger than the ARJ21, its production capacity is destined to be higher than that of the ARJ21 at the same stage. The order size of 300 aircraft is estimated to be sufficient for commercial production until 2030 to protect the C919.
The difference between this order signing and the past is that the main party signing the purchase is not the usual airline, but the main domestic leasing company.
The domestic leasing companies that signed the contract to buy C919 are: BOC gold rent, ICBC gold rent, CCB gold rent, CMB gold rent, CMB gold rent, Pohang gold rent and Su Yin gold rent, from the name of the leasing companies that signed the contract can be seen, these very low exposure leasing companies are behind the major state-owned banks and financial institutions, is the real "national team".
The C919 aircraft model qualification certificate ceremony was held in Beijing. (Xinhua)
It should be noted that it is very common for leasing companies to buy aircraft and then rent them out to customers in the civil aviation industry, which is determined by the high price of aircraft and the operation of heavy assets in the civil aviation industry.
The domestic aircraft leasing companies rely on the huge funds of the trust bank to carry out aircraft leasing business, which undoubtedly alleviates the huge financial pressure brought by the airlines to purchase aircraft on their own.
Moreover, compared to purchasing on their own, leasing will undoubtedly allow airlines to make more flexible operational adjustments, and if they feel that the aircraft does not meet their operational needs, they will be refunded when they expire.
It can be said that the aircraft leasing business of the major banks has played a very good role in financial services to the real economy.
The stable rental income generated by aircraft leasing is also an investment target with extremely healthy returns and low risk.
Therefore, in the epidemic has lasted for three years, the major domestic airlines continue to suffer huge losses and capital constraints, it is undoubtedly the most appropriate arrangement for the leasing companies of the major banks to buy aircraft and lease them to the domestic airlines.
By the strong financial leasing company to carry out the bottom of the order, and then rent out to each airline on demand, can reduce the financial pressure and worry of domestic airlines to use the C919.
POSCO Leasing, which contracted to purchase C919, is a company with a shareholder background in the civil aviation manufacturing and aviation services industries (photo provided by the author)
It is worth noting that the leasing companies involved in the signing of the confirmed order also include the overseas subsidiary of Bank of Communications Aviation Ireland.
CBC Ireland is noteworthy, on the one hand, because it is the first overseas platform to sign a contract with COMAC, and on the other hand, because its aviation leasing business is aimed at the Irish region.
Ryanair, Europe ’ s largest low-cost carrier, is headquartered in Ireland, and Ryanair signed a memorandum of understanding (MOU) for 200 C919s with COMAC back in 2011. “We are still committed to the C919 project, ” Ryanair ’ s President said in a press interview in 2020, even though it has been more than a decade since Ryanair signed the MOU for 200 C919.
Therefore, the order for 50 C919s and 10 ARJ21s signed by Bank of Communications in Ireland makes people think about it.
After the C919 is granted an EASA airworthiness license, it is highly likely that Ryanair will acquire the C919 and put it into operation on a less-risky model such as leasing.
Moreover, unlike users in some developing countries, Ryanair, as the largest low-cost airline in Europe, has sufficient experience in aircraft operation and maintenance, and can be said to be an ideal overseas user.
China Commercial Aviation signed a contract with Bank of China Airlines Ireland. (Photo provided by the author)
Although the firm order of 300 aircraft is a "big order of the century" in terms of a single contract, for an aircraft model, the order of 300 aircraft is far from being a meal, even if it can only be plugged in the teeth, it is not enough for COMAC to formulate a long-term production plan and arrange production capacity.
In order to achieve long-term stable production and allow supporting suppliers to confidently expand production capacity, more orders are required, at least thousands of confirmed orders and production time is extended to more than ten years to achieve the passing line.
Ryanair painted C919 by foreign aviation enthusiasts (Photo by the author)
The C919 ’ s single-aisle trunk aircraft is the most competitive in the international market, and Airbus and Boeing compete fiercely on this track. Even though the Boeing 737MAX has suffered a setback due to the Boeing scandal, the C919 still has insufficient strength in the international market for the 737MAX, let alone the buoyant Airbus A320NEO. It's over.
Therefore, C919 is bound to rely heavily on the domestic market in the first and medium term, and under the policy support, it will first establish a stable domestic environment and obtain stable development, and then consider going to the sea to the world.
Is the domestic market enough to support the C919?
In the 2020 China Aviation Market Forecast Report, AVIC believes that the fleet size of China's aviation market will reach nearly 9,000 by 2039, which is similar to the forecasts of Boeing and Airbus.
In the 20-year period from 2019 to 2039, China needs a total of 7,576 new aircraft, and the demand for narrow-body passenger aircraft belonging to the category of C919 is about 5,000. Even if the C919 completes its production capacity in 2030 and achieves stable mass production, it still cannot fill the huge demand of the Chinese civil aviation market. A sizeable proportion of foreign aircraft purchases – the 472 aircraft ordered by Airbus over the past six months – is a clear signal.
China's procurement of Boeing will remain low in the future
Due to factors such as tensions between China and the United States and the Boeing scandal, the procurement of Boeing aircraft is bound to remain at a lower level in the foreseeable future if Sino-US relations do not undergo a violent turn of 180 degrees.
The long-term advantages of Airbus aircraft in the domestic stock and use inertia doomed Airbus to occupy half of China's future fleet.
With the fleet composition shuffle brought by the C919, when this shuffle stabilizes, China's fleet composition is likely to be about 50% -60% of Airbus, about 30% -40% of Commercial Aviation, and about 10% -20% of Boeing's structure, which means that the C919 has at least 1,500 domestic orders, enough to provide a long-term healthy environment for the C919 project.
This is precisely the basis for China ’ s initial decision to build a large C919 aircraft project: there is a large enough domestic market for the C919 to grow.
On October 30, 2021, China Commercial Airlines C919 passenger aircraft made a static display at the Nanchang Flight Conference 2021.
Photo by Li Tong / Visual China
Of course, it is not enough to have a large enough market, support from the national will and a clear national strategy is the key.
Of course, from the establishment of commercial aviation in 2008 to now, China's national will to engage in large aircraft has been very clear, this time several major leasing companies brush down the order is also from the action on the substantial support of the large aircraft project.
However, for the C919, this does not mean that the US government's threat to the C919 project and COMAC has always been a hanging sword of Damocles. Although the C919 has raised the C919's domestic production rate to about 60% through the mode of Sino-foreign cooperation, the leap1C engine of public concern still needs to be supplied by the United States.
Although the C919 project has the CJ1000A large channel ratio engine developed by AVIC as a power backup, the official certification time node of the CJ1000A engine has been quietly postponed from 2025 to 2027.
And even if the CJ1000A engine is certified and put into production, there are still a considerable number of parts (such as bearings, etc.) inside the engine depends on foreign supply - after all, the complexity of the engine is no less than that of the aircraft.
But there is no need to be pessimistic about this, which is the stage that later pursuers must go through.
From only buying imported aircraft to buying imported devices to buying imported parts, the field of dependence on foreign countries is getting smaller and more microscopic, and we can produce more and more things on our own, and the level is getting higher and higher.
The basis for the development of the relevant industrial chain driven by the large aircraft project is the huge order and demand, and for the C919 large aircraft, the order of 300 aircraft at the air show is just the beginning.

Business aviation is also recovering, with deliveries in 2023 surpassing 4,000 units globally for the first time in over a decade.

Major players here include Bombardier, Dassault, Embraer, Gulfstream, and Boeing’s BBJ units.

Title:

Content: Textron: An Overlooked Aviation Value Opportunity

Textron has made huge strides with sustainable fuel and a valuable defense contract

16 hours ago
Summary
  • Textron's sustainability investments could pay off in the long run.
  • The company has also won a $70 billion Army contract, though this is under fire from a Lockheed Martin protest.

The aviation and defense industry can be difficult to assess due to its contract-based structure, geopolitical exposure and huge capital expenditures that may or may not pay off. As shown by cases such as the that of Boeing’s (

BA, Financial) 737 Max, a high-profile failure can lead to years of underperformance and financial losses for a company in this industry.

However, it is still possible to identify aviation and defense stocks with outperformance potential by looking for key tailwinds such as lucrative contracts, growing backlogs and technological advancements. One overlooked company that is doing well based on these criteria is Textron Inc. (

TXT, Financial).

From its humble beginnings as a synthetic yarn producer in 1923 (which was a cutting-edge product at the time), Textron’s predecessor company transitioned to a parachute maker in World War II and then began the process of making acquisitions to become an aviation, defense and industrial products conglomerate. Nowadays, it is home to several industry-leading brands, including Bell, Cessna, Beechcraft, E-Z-GO, Arctic Cat and more.

The company’s key areas of growth are aviation and defense, which are supported by a robust financial business. It recently marked a big defense milestone by winning a U.S. Army helicopter contract for its tilt-rotor aircraft, the V-280 Valor, to replace retiring Black Hawk aircraft, beating out Lockheed Martin (

LMT, Financial) and Boeing. The contract could be worth as much as $70 billion over the decades, according to the Army. Textron is also positioning itself as an early leader in sustainable aviation fuel (SAF), which could serve as a long-lasting growth booster as companies look to decarbonize.

Key contract set to drive sustainable revenue boost

A contract worth $70 billion over the next few decades may not be enough to move the needle at a giant like Lockheed Martin, but Textron has a market cap of just $14.09 billion as of this writing, and its revenue for full-year 2022 was $12.86 billion. Out of that, $3.1 billion in revenue came from the company’s Bell division, which houses its military rotorcraft and commercial helicopter operations. In other words, the V-280 Valor could be a significant revenue booster in the coming decades.

The contract has been protested by Lockheed Martin, which asked the U.S. Government Accountability Office to review the decision based on its assertion that Lockheed Martin’s proposal would provide better value to the Army and taxpayers. It should be noted this is just standard procedure and posturing; competitors cannot just take losing a contract at face value without protesting the decision because it would make them look weak and thus decrease their chances of getting more contracts in the future.

According to J.J. Gertler, a senior analyst at the Teal Group Corp., approximately 45% of such protests are successful, likely due to the highly speculative process of trying to figure out which contractor’s proposal is the best combination of value and performance. The results of this particular review are due on April 7, so the GAO’s final decision on the matter should go public soon.

However, a few years ago, Congress made it a requirement for the U.S. Department of Defense to explain to a company why it won or lost a competition, which has decreased the number of protests and increased transparency. “We are confident that the process we went through was disciplined and deliberate and it counted for the complexity of the decision that was involved,” Major General Robert Barrie said on the subject of the Army’s decision to award the contract to Textron.

Sustainable fuel investments could pay off in the long run

Textron’s Aviation division is even bigger than its Bell division, recording $5.1 billion in revenue in 2022. As the demand for aircraft of all types and sizes continues to grow on a global scale, companies are increasingly paying attention to the fuel consumption of their aircraft. Fuel is a significant cost of aircraft operation, and since there is a limited supply of fossil fuels in the world, it is destined to become increasingly expensive in the long run. Thus, aircraft manufacturers that make early moves in sustainable and alternative fuels and fuel efficiency can position themselves better for long-term growth.

All newer Textron Aviation turbine aircraft can operate with sustainable aviation fuel, which is made from renewable and waste feedstocks. While it is not clean-burning, SAF does reduce greenhouse gas emissions on a lifecycle basis. Buyers of certain Textron aircraft can get SAF in their initial tank upon delivery, and the company’s Wichita service center offers SAF refueling. Textron Aviation is aiming for all post-2020 growth to be carbon neutral, and it hopes to cut its carbon emissions in half by 2050.

Textron has also made a move into electric aircraft with its fourth-quarter 2022 acquisition of revolutionary Slovenian aircraft developer Pipistrel for $235 million. Pipistrel now makes up Textron’s new eAviation division. It’s far from being a profitability driver at the moment, as the business reported revenue of $6 million and a net loss of $10 million in the fourth quarter of 2022. However, Pipistrel is famous for having developed a light plane that can fly with an energy cost of as little as 1 euro ($1.10) per hour, and as Textron’s naming of the new division shows, it plans to focus primarily on developing the company’s electric aircraft.

Valuation and takeaway

Despite its promising growth outlook, Textron trades at a price-earnings ratio of just 17.25. Based on analyst estimates from Morningstar (

MORN, Financial), the forward price-earnings ratio is even lower at 13.43. This may be due in part to how choppy the company’s bottom line has been historically.

Textron maintains a solid balance sheet with a Piotroski F-Score of 7 out of 9 and an interest coverage ratio of 8.25, and its research and development spending typically runs around the mid 4% range of revenue, which does not break the bank. This strategy may draw criticism in a bull market, but in the current rising interest rate environment, it gives Textron a leg up to invest in growth.

The GF Value chart rates the stock as fairly valued. Despite the stock’s recent upwards trajectory and low price-earnings ratio, it has a volatile history, so the company may need to prove its ability to record significant growth before Mr. Market pays attention.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure
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Growth is driven by demand for premium, long-range, and fuel-efficient private jets, especially in Asia-Pacific and the Middle East .

Title:

Content: NEW YORK, Sept. 13, 2021 /PRNewswire/ -- Research Dive has published a report titled, "Aerospace Avionics Market by Systems (Flight Control System, Communication System, Navigation System, Monitoring System, and Others), Application (Commercial Aviation, Military Aviation, and Business Jets & General Aviation), Distribution Channel (OEM and Aftermarket), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021-2028"

The Global Aerospace Avionics Market is predicted to garner a revenue of $1,18,619.0 million at a CAGR of 6.7% during the forecast period, rising from $71,362.8 million in 2020.

Download PDF Sample Report of Global Aerospace Avionics Market

Regional Analysis

North America Aerospace Avionics Market accounted for $24,192.0 million in 2020 and is further predicted to generate a revenue of $38,990.1 million by the end of 2028.  The countries such as the U.S. and Canada have the most advanced infrastructure in the commercial and military aviation industry. Apart from this, the leading players of the industry are focusing on the research and development of aerospace avionics which has increased the chances of growth and sustainability of the market. These factors are expected to enhance the market growth during the forecast period.

Get 20% OFF on North America Aerospace Avionics Market Analysis (Customization)

Key Segments of the Market

The report has divided the market into different segments based on system, application, distribution channel, and regional analysis.

  • Systems: The flight control system sub-segment is predicted to garner a dominating revenue of $44,541.4 million in 2028, surging from $ 27,763.5 million in 2020. Demand of advanced aircraft operations in the military and commercial aviation is expected to be one of the main factors behind the growth of the market segment.
  • Application: The commercial aviation sub-segment is expected to register the highest revenue of $62,638.0 by the end of 2028, at a healthy CAGR of 7.0% during the forecast period.

The rising number of air travelers across the world is going to enhance the growth of the market segment during the forecast period.

  • Distribution Channel: The original equipment manufacturer (OEM) sub-segment is forecasted to garner a revenue of $67,910.5 million by 2028, increasing from $41,429.5 million in 2020. The growth of commercial, general, and military aviation in recent years is the main factor enhancing the growth of the market segment in upcoming years.

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Dynamics of the Market

Driver: The increasing number of air travelers has surged the demand of commercial aviation, propelling the growth of the global aerospace avionics market during the forecast period. Avionics systems such as communication systems, flight management system, navigation system, electrical, and surveillance systems are used in commercial systems. These factors are expected to enhance the growth of the market during the forecast period.

Restraint: Being highly sophisticated, the costs of commercial aircrafts are highly expensive. They require a huge investment for manufacturing, maintenance, and operations. This is expected to be the main restraining factor of the industry during the forecast period.

Opportunity: The increasing demand of military and commercial aircrafts is expected to create many opportunities for the market in upcoming years.

Key Market Players & Strategies

  1. NORTHROP GRUMMAN CORPORATION
  2. L3Harris Technologies, Inc.
  3. General Dynamics Corporation
  4. BAE Systems
  5. Thales Group
  6. Leonardo S.P.A
  7. Elbit Systems Ltd.
  8. Airbus
  9. General Electric
  10. Boeing

- Inquire and Get Quick Access to Top Companies Development Strategies Summary Report

These players are working on developing strategies such as product development, mergers and acquisitions, partnerships and collaborations to sustain the market growth.

The report also summarizes many important aspects including financial performance of the key players, SWOT analysis, product portfolio, and recent strategic developments.

Recent Development

In April 2021, Elbit Systems Ltd announced that its U.S. subsidiary, Elbit Systems of America, LLC, completed the acquisition of Sparton Corporation, a premier producer, developer, and supplier of systems helping Undersea Warfare for the U.S. Navy and allied military forces.

Elbit Systems expects that this acquisition will enhance its portfolio by the addition of the technological strength of Sparton to the long term strategy of the company.

Impact of COVID-19 on the Global Aerospace Avionics Market

The coronavirus outbreak has impacted the Global Aerospace Avionics Market in a negative way. Due to the restrictions imposed on the travel and tourism industry during the pandemic, the passenger demand of aircrafts has been declined. This factor resulted in the decreased demand of avionics hardware and software in the commercial aviation sector. However, with the revised and restructured business models of the industry, the global market is expected to growth after the end of the pandemic.

Access Our Comprehensive Analysis of the Impact of Covid-19 on GLOBAL AEROSPACE AVIONICS MARKET

More about Aerospace Avionics

Global Aerospace Avionics Market Is Anticipated To Generate A Revenue Of $1,18,619.0 Million, Growing At A CAGR Of 6.7% From 2021 To 2028

Global Aerospace Avionics Market Propelling with the Surging Demand of Commercial Aircrafts

How are New Technologies Going to Boom Aerospace Avionics Industry?

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The general aviation sector is advancing with record backlogs and increased deliveries, highlighting innovation in safety and sustainability-critical technologies .

The regional dynamics show Asia-Pacific leading volume growth fueled by urbanization and expanding middle classes.

Europe shows strong demand for fleet modernization to meet environmental mandates and operational efficiency goals.

Title:

Content: There were 826 press releases posted in the last 24 hours and 187,340 in the last 365 days.

Aviation Analytics Market to Hit USD 4.36 Billion by (2021-2028) | Aviation Analytics Industry CAGR of 11.58%

Companies covered in aviation analytics market report are Airbus (France) Boeing (U.S.) Collins Airspace (U.S.) General Electric (U.S.) Honeywell International Inc. (U.S.) IBM (U.S.) L3Harris Technologies Inc. (U.S.) Oracle (U.S.) SAP SE (U.S.) and more players profiled.

/EIN News/ -- Pune, India, Feb. 08, 2022 (GLOBE NEWSWIRE) -- The global aviation analytics market size is anticipated to hit USD 4.36 billion by 2028 and exhibit a CAGR of 11.58% during the forecast period. Airlines' growing adoption of aviation analytics for cost saving is anticipated to bolster market growth. Fortune Business Insights has presented this information in its report titled “Aviation Analytics Market, 2021-2028”. According to the report, the market size stood at USD 1.93 billion in 2020 and USD 2.02 billion in 2021.

List of Key Players Operating in Aviation Analytics Market:

  • Airbus (France)
  • Boeing (U.S.)
  • Collins Airspace (U.S.)
  • General Electric (U.S.)
  • Honeywell International Inc. (U.S.)
  • IBM (U.S.)
  • L3Harris Technologies Inc. (U.S.)
  • Oracle (U.S.)
  • SAP SE (U.S.)

Get a Sample PDF Brochure:

https://www.fortunebusinessinsights.com/enquiry/request-sample-pdf/aviation-analytics-market-102101

COVID-19 Impact-

The sudden coronavirus outbreak has severely hampered the growth of several markets and industries. The aviation industry suffered a drastic impact from the coronavirus pandemic. Several countries' cancellations of flights and air travel bans have affected the market growth. The high unemployment due to lay-offs has created havoc in the industry. The market is currently recovering with the introduction of vaccines and is likely to prosper in the coming years.

Market Segments:

Function, Application, Product, End-use, and Region are studied for the Market

On the basis of function, the market is fragmented into

  • sales & marketing
  • operations
  • finance

On the basis of application, it is segmented into

  • navigation service
  • customer analytics
  • flight risk management
  • fuel management

On the basis of product bifurcated into

  • solutions
  • services.

On the basis of end-use, it is categorized into

  • OEM
  • aftermarket.

Geographically, it is studied across

  • North America
  • Middle East
  • Europe
  • Asia Pacific
  • Rest of the World.

Browse Detailed Summary of Research Report with TOC:

https://www.fortunebusinessinsights.com/aviation-analytics-market-102101

Report Coverage-

  • The report delivers detailed insights about key developments such as mergers, partnerships, and acquisitions by prominent players in the market.
  • The report offers information on the latest technological advancements, drivers, and restraining factors of the industry.
  • The report consists of the effects of COVID-19 on the market.

Drivers & Restraints-

Emphasis on Cost Reduction by Airlines to Increase Market Growth
The product adoption has enabled airlines and airports to cut costs, including baggage loss and fuel. Airlines can accurately assess the flight route and carry the adequate amount of fuel required through aviation analytics. The IATA reported in 2020 that 22.1% of operating costs are spent on fuel by airlines. Hence, adopting such advanced solutions is anticipated to bolster market growth.
Additionally, the adoption of Big Data has increased in recent years. Airlines can better understand, plan, and deliver according to the dynamic market demands with Big Data analytics. This is likely to boost the aviation analytics market growth.
However, lack of skilled professionals for analytics may hinder the market growth.

Inquire Before Buying This Research Report:

https://www.fortunebusinessinsights.com/enquiry/queries/aviation-analytics-market-102101

Regional Insights-

Presence of Key Players to Boost Growth in North America

North America is anticipated to emerge dominant in the global aviation analytics market share. The key players present in the region, including Honeywell International Inc., Boeing, and Collins Aerospace is expected to be a major factor influencing the market growth.
Europe is projected to exhibit considerable growth in the coming years due to the increasing demand for technological advancements, the aviation sector’s modernization, and increasing travel and tourism.
Asia Pacific is slated to witness rapid growth in the global market due to the expanding aviation industry in the region. Additionally, increasing air travel in South Korea, India, China, and other countries is likely to boost market growth.
The rest of the world is expected to experience sluggish growth due to low aviation budgets. Due to new aircraft procurements and rising air travel, the Middle East will exhibit slight growth.

Detailed Table of Content:

  • Introduction
    • Research Scope
    • Market Segmentation
    • Research Methodology
    • Definitions and Assumptions
  • Executive Summary
  • Market Dynamics
    • Market Drivers
    • Market Restraints
    • Market Opportunities
  • Key Insights
    • Key Industry Developments – Key Contracts & Agreements, Mergers, Acquisitions and Partnerships
    • Latest technological Advancements
    • Porters Five Forces Analysis
    • Supply Chain Analysis
  • Quantitative Insights-Impact of COVID-19 Pandemic on Global Aviation Analytics Market
    • Impact of COVID-19 Pandemic on Global Aviation Analytics Market
    • Steps Taken by Industry/Companies/Government to Overcome the Impact
    • Key Development in the industry in Response to COVID-19 Pandemic
    • Potential Opportunities due to COVID-19 Outbreak
  • Global Aviation Analytics Market Analysis, Insights and Forecast, 2017-2028
    • Key Findings / Definitions
    • Market Analysis, Insights and Forecast – By Function
      • Function
      • Operation
      •  Sales & Marketing
      • Others
    • Market Analysis, Insights and Forecast – By Application
      • Fuel Management
      • Flight risk management
      • Customer Analytics
      • Navigation Services
      • Others
    • Market Analysis, Insights and Forecast – By Product
      • Service
      • Solution
    • Market Analysis, Insights and Forecast – By End-Use
      • OEM
      • Aftermarket
    • Market Analysis, Insights and Forecast – By Region
      • North America
      • Europe
      • Asia-pacific
      • Middle East
      • Rest of the world

TOC Continued…!

Speak to Our Expert:

https://www.fortunebusinessinsights.com/enquiry/speak-to-analyst/aviation-analytics-market-102101

Competitive Landscape-

Key players Adopt Contracts and Partnerships to Acquire Growth

The market comprises several key players operating domestically and internationally. They focus on business expansion by adopting ingenious growth strategies including partnerships with OEMs and contracts. For instance, Sun Express and GE Aviation signed a digital agreement for Airbus A330 and Boeing 737 aircraft data safety analytics solutions in March 2020.

Industry Development-

  • October 2020: Hilton Software was awarded a contract worth USD 4 million by the Federal Aviation Administration (FAA) to offer continuous data and software excellence for the Flight Program Operations by FAA.

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Fortune Business Insights™ delivers accurate data and innovative corporate analysis, helping organizations of all sizes make appropriate decisions. We tailor novel solutions for our clients, assisting them to address various challenges distinct to their businesses. Our aim is to empower them with holistic market intelligence, providing a granular overview of the market they are operating in.

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What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What impact shall the carbon tax to be imposed by EU in 2026 have on airlines?

They will accelerate the demand for aircraft replacement.

North America remains a stable, mature market with steady demand, while the Middle East benefits from emerging carriers expanding international connectivity .

The aircraft leasing market is also expanding, enabling airlines flexibility to scale fleets amid fluctuating market conditions, with major hubs in Europe, North America, and growing interest in Asia-Pacific emerging markets .

Key trends shaping future aerospace demand include a strategic pivot to sustainability via SAF, electric and hybrid propulsion, lightweight composites, advanced digital avionics, and connectivity solutions that enhance passenger experience and enable predictive maintenance.

Title:

Content:
Navigating The Skies Of Growth: Global Aerospace Composites Market Insights

(MENAFN- EIN Presswire)

Aerospace Composites Global Market Report 2024 : Market Size, Trends, And Global Forecast 2024-2033

The Business Research Company's Aerospace Composites Global Market Report 2024 – Market Size, Trends, And Global Forecast 2024-2033

The 2024 Global Market Report on Aerospace Composites by The Business Research Company offers insights into market size, trends, and a global forecast spanning 2024-2033.” - The Business Research Company

LONDON, GREATER LONDON, UK, December 25, 2023 /EINPresswire / -- Year End Offer By The Business Research Company - Get 33% Discount On Opportunities And Strategies Reports And 25% Discount On Global Market Reports

Market Overview: Ascending from $26.25 Billion to $29.95 Billion in 2023
The global aerospace composites market experienced robust growth, advancing from $26.25 billion in 2022 to $29.95 billion in 2023, showcasing a remarkable Compound Annual Growth Rate (CAGR) of 14.1%. As the market evolves, it is poised for sustained expansion, projecting a market size of $51.83 billion by 2027, with a CAGR of 14.7%.

The global aerospace composites market is soaring to new heights, characterized by diverse fiber types, aircraft categories, manufacturing processes, resin varieties, and applications:
1 Fiber Type:
.Carbon Fiber Composites
.Ceramic Fiber Composites
.Glass Fiber Others
2 Aircraft Type:
.Commercial Aircraft
.Business & General Aviation
.Civil Helicopter
.Military Others
3 Manufacturing Process:
.AFP/ATL
.Lay-Up Process
.Resin Transfer Moulding Process
.Filament Winding Others
4 Resin Type:
.Benzoxazine
.Cyanate Ester
.Bismalimide
.Ceramic and Metal Matrix
.Thermosetting Others
5 Application:
.Interior
.Exterior

Explore the market with a detailed sample report:

Driving Force: Demand for High-Strength, Lightweight Materials The surge in demand for high-strength and lightweight composite materials is steering the aerospace composites market forward. The pursuit of energy efficiency and reduced fuel consumption is achieved through the use of lightweight materials, minimizing the aircraft's mass. This, in turn, leads to enhanced flight performance, structural strength, and stiffness, contributing to reduced carbon footprints. According to the '2020 State of the Industry Report' by Composites Manufacturing Magazine, the US composite end products market is anticipated to reach $33.4 billion by 2025, with glass fiber-based composites dominating the market.

Key Players Shaping the Horizon Major players shaping the aerospace composites market include Solvay, Toray Industries Inc., Mitsubishi Chemical Holdings, Hexcel Corporation, Teijin Limited, SGL Group, Spirit AeroSystems, Materion Corporation, Owens Corning, Spirit AeroSystems Inc., LEE Aerospace Inc., Gurit Holding AG, General Electric Corporation, Rolls-Royce Motor Cars Ltd., Kineco-Kaman Composites, and Nippon Graphite Fiber Corporation. These industry leaders contribute to market dynamics and foster innovation in composite material and process technologies.

Innovation Trends: Technological Advancements and Consortium Initiatives Companies in the aerospace composites market are steering their focus towards technological advancements to accelerate the development of next-generation aircraft and future mobility. Technologically advanced and modern aircraft, equipped with increased payload capacities and cost-efficiency, are replacing outdated models. For instance, GKN Aerospace, a UK-based company, launched the ASCEND consortium to advance lightweight structures, positioning the UK as a technology leader in future aerospace technologies. This initiative contributes to reducing carbon emissions and energy consumption in the aerospace industry.

Explore detailed insights into market trends, innovations, and growth opportunities with the complete report:

Regional Dynamics: North America Takes the Lead in 2022
In 2022, North America emerged as the largest region in the aerospace composites market. As the market evolves, Asia-Pacific is poised to be the fastest-growing region, offering significant opportunities for market players. The regions covered in the aerospace composites market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

Aerospace Composites Global Market Report 2023 from TBRC covers the following information:
.Market size date for the forecast period: Historical and Future
.Market analysis by region: Asia-Pacific, China, Western Europe, Eastern Europe, North America, USA, South America, Middle East and Africa.
.Market analysis by countries: Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

Trends, opportunities, strategies and so much more.
The Aerospace Composites Global Market Report 2023 by The Business Research Company is the most comprehensive report that provides insights on aerospace composites market size, aerospace composites market drivers and trends, aerospace composites market major players, competitors' revenues, market positioning, and market growth across geographies. The aerospace composites market report helps you gain in-depth insights on opportunities and strategies. Companies can leverage the data in the report and tap into segments with the highest growth potential.

Browse Through More Similar Reports By The Business Research Company:
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About The Business Research Company
The Business Research Company has published over 3000+ detailed industry reports, spanning over 3000+ market segments and 60 geographies. The reports draw on 1,500,000 datasets, extensive secondary research, and exclusive insights from interviews with industry leaders.

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Unveiling the Automotive Heads-Up Display Market: Growth Potential & Technological Advancements

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What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What is Airbus doing to achieve sustainable aviation?

It is working on adopting innovative strategies.

It is making efforts to improve aircraft efficiency.

Governments and regulators are reinforcing policies around carbon emissions reduction, which spur demand for next-generation aircraft and technological innovation [ce100173-e198-486d-9705-b5584a15779f_257721921; 9c84e191-48be-41f5-8cb5-9eedf563dcd3_53958405; 524202a2-9895-4a11-af64-96db15bee7ed_489227355].

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What impact shall the carbon tax to be imposed by EU in 2026 have on airlines?

They will accelerate the demand for aircraft replacement.

Strategic moves by manufacturers illustrate heavy R&D investments in SAF-compatible aircraft and electric propulsion systems, enhanced supply chain resilience post-pandemic, and expanded global footprint targeting emerging demand regions.

Title:

Content: AMA Research & Media

Business Jet Market Is Booming Worldwide : Dassault Aviation, Bombardier, Adam Aircraft, Hawker Beechcraft

NJ New Jersey, USA -- (SBWIRE) -- 10/05/2023 -- Advance Market Analytics published a new research publication on "Global Business Jet Market Insights, to 2028" with 232 pages and enriched with self-explained Tables and charts in presentable format. In the Study, you will find new evolving Trends, Drivers, Restraints, Opportunities generated by targeting market-associated stakeholders. The growth of the Business Jet market was mainly driven by the increasing R&D spending across the world.

Get Free Exclusive PDF Sample Copy of This Research @ https://www.advancemarketanalytics.com/sample-report/38313-global-business-jet-market?utm_source=SBWire&utm_medium=Vinay

Major players profiled in the study are:
Bombardier Inc. (Canada), Dassault Aviation S.A. (France) , Cessna Aircraft Company (United States), Gulfstream Aerospace Corporation (United States) , Embraer S.A. (Brazil), Adam Aircraft (United States), Boeing Commercial Airplanes (United States), Eclipse Aviation (United States), Hawker Beechcraft (United States), Honda Aircraft Company (United States), Israel Aerospace Industries (Israel), Pipe Aircraft (United States),

Scope of the Report of Business Jet
A business Jet is an aircraft mainly designed to transport a small number of passengers at a premium cost compared to a commercial airliner. Business jets are mostly owned and operated by corporations, wealthy people, government agencies, or commercial business jet operators that provide air charter or air taxi services. The business jet offers several facilities such are safe and cost effective mode of travel, reduce travel time and conduct business during the flight. There has been significant rise in number of business jet aircraft model with figure stood up to 21,339 in United States alone in 2018, the future for business jet looks promising. The major companies are introducing latest technology based business jet in Asia-Pacific and Middle East region to as its demand is observed in flight scheduling and efficient profit through aviation.

In December 2018, The Boeing Co. launched an BBJ 777X, a new boeing business jet model which is beneficial in providing longest range of 11,645 nautical miles and a 3,256-square-foot cabin and unlimited interior design options to ensure ultimate comfort for long distance travel.

The Global Business Jet Market segments and Market Data Break Down are illuminated below:
by Type (Light Business Jets, Mid-Size Business Jets, Large Business Jets), Application (Business, Commercial, Amphibious aircrafts), Size (Small, Medium, Large), Distribution Channels (OEMs, Aftermarket)

Market Opportunities:
- Introduction of New Models and Technology Advancements Expected to Boost the Business Jet Market.
- Rapid Deployment of Specialist Team Improving the Organization Efficiency Leads to Propel the Market.

Market Drivers:
- Replacement of Old Aircraft into New Aircrafts Leads to Drive the Business Jet Market.
- Rise in Corporate Profits Fuelled up the Market.

Market Trend:
- Increase demand of pre-owned business jets.
- Business jet Market Growth with Increase of Premium Consumer.

What can be explored with the Business Jet Market Study?
- Gain Market Understanding
- Identify Growth Opportunities
- Analyze and Measure the Global Business Jet Market by Identifying Investment across various Industry Verticals
- Understand the Trends that will drive Future Changes in Business Jet
- Understand the Competitive Scenarios
- Track Right Markets
- Identify the Right Verticals

Region Included are: North America, Europe, Asia Pacific, Oceania, South America, Middle East & Africa

Country Level Break-Up: United States, Canada, Mexico, Brazil, Argentina, Colombia, Chile, South Africa, Nigeria, Tunisia, Morocco, Germany, United Kingdom (UK), the Netherlands, Spain, Italy, Belgium, Austria, Turkey, Russia, France, Poland, Israel, United Arab Emirates, Qatar, Saudi Arabia, China, Japan, Taiwan, South Korea, Singapore, India, Australia and New Zealand etc.

Have Any Questions Regarding Global Business Jet Market Report, Ask Our Experts@ https://www.advancemarketanalytics.com/enquiry-before-buy/38313-global-business-jet-market?utm_source=SBWire&utm_medium=Vinay

Strategic Points Covered in Table of Content of Global Business Jet Market:
Chapter 1: Introduction, market driving force product Objective of Study and Research Scope the Business Jet market
Chapter 2: Exclusive Summary – the basic information of the Business Jet Market.
Chapter 3: Displaying the Market Dynamics- Drivers, Trends and Challenges & Opportunities of the Business Jet
Chapter 4: Presenting the Business Jet Market Factor Analysis, Porters Five Forces, Supply/Value Chain, PESTEL analysis, Market Entropy, Patent/Trademark Analysis.
Chapter 5: Displaying the by Type, End User and Region/Country 2016-2021
Chapter 6: Evaluating the leading manufacturers of the Business Jet market which consists of its Competitive Landscape, Peer Group Analysis, BCG Matrix & Company Profile
Chapter 7: To evaluate the market by segments, by countries and by Manufacturers/Company with revenue share and sales by key countries in these various regions (2023-2028)
Chapter 8 & 9: Displaying the Appendix, Methodology and Data Source

Finally, Business Jet Market is a valuable source of guidance for individuals and companies.

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Thanks for reading this article; you can also get individual chapter wise section or region wise report version like North America, Middle East, Africa, Europe or LATAM, Southeast Asia.

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

What is Airbus doing to achieve sustainable aviation?

It is working on adopting innovative strategies.

Notably, Textron, specializing in military and business aviation sectors, has secured significant defense contracts and is emerging in sustainable aviation fuel (SAF) and electric aircraft segments, positioning for long-term growth amidst industry decarbonization

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

[d0868668-650b-41ae-bf3a-02d9a523015c_20700738; 1c226a6a-72ce-4f97-9550-28bd7665d3e9_187259902].

What is the significance of Rolls-Royce's testing of an aircraft engine powered by hydrogen?

It will mark the first time a modern aircraft engine has been fueled by hydrogen.

The commercial airline segment is navigating operational challenges post-pandemic, including labor shortages and high fuel costs, with carriers like Delta adopting cost-conscious fleet strategies and focusing on fuel hedging and diversified revenue streams to maintain profitability .

Title:

Content: Delta Air Lines Remains A Buy

Jul. 16, 2022 5:46 AM ETDelta Air Lines, Inc. (DAL)2 Likes

Summary

  • Delta missed expectations on top and bottom line.
  • The elements driving the miss are not completely unexpected.
  • With investors punishing the stock but the long-term strategy and targets intact, there is an opportunity for successful investment.
  • Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More »

Shares of Delta Air Lines (NYSE:DAL) slipped after the company provided its second quarter results and provided guidance for the third quarter. Results came in below the consensus estimate and that is not a full surprise as I pointed out earlier that Delta Air Lines but also other airlines are facing a tough environment for staffing and cost control and that is what hit the airline in the second quarter despite strong demand for air travel.

Delta Air Lines Produces a Miss

Delta Air Lines produced an EPS miss of $0.28 as the consensus estimate was that the company would produce earnings per share of $1.72 but only ended up generating earnings per share of $1.44. As we see, revenue almost fully recovered to 2019 levels as was expected. Delta Air Lines reported revenues of $12.31 billion whereas $12.33 billion was expected and its previous guidance suggested $12.4 billion to $12.5 billion in sales. The miss can be attributed to the capacity being at the lower end of the guided range due to operational reliability issues and Delta's effort to improve that reliability. The result was that costs per available seat mile excluding fuel (CASM-Ex) were up 22% being the higher end of the range.

The margins ended up below what Delta had guided for. In June, Delta still improved the lower end of its guidance by 1 percentage point, but with an 11% GAAP margin and 11.7% non-GAAP margin Delta missed its updates as well as its initial guidance. It is not really difficult to know where most of that margin compression comes from. If fuel prices would have been at the midpoint of the guided range margins would have been around 12.9% or put differently the margin pressure was between 0.8 and 1.5 percentage point. The remainder of the cost growth was driven by additional investment required to improve operational reliability.

We can make a long store about it, but the fact is that Delta Air Lines missed the numbers from its previous guidance due to operational issues that reduced revenues and required additional investments and higher than expected fuel prices. This has been an ongoing concern for airlines and is not just applicable to Delta Air Lines. Was it all that bad for Delta Air Lines? No, actually not. The company earlier guided for $1.5 billion in free cash flow and despite additional investments to improve operational reliability the airline reported free cash flow of $1.6 billion beating its own guide. Additionally, the momentum for corporate travel is improving. Delta was one of the airlines skeptical about a return of corporate level, but reality is largely proving them wrong now with corporate volume back at 65% and corporate sales back at 80% of previous levels. Surveys indicate that 84% will be recovered measured by volume in the second half of the year pointing to a strong recovery that still has to materialize and 90% in 2023.

Guidance: Not Ambitious

So, things really are not that bad at all I would say. I believe what spooked the market is the fuel prices outstripping the strong demand environment which gives some doubt on future profitability in case fare pricing softens or fuel prices do not fall enough. I don't think that should have been a reason to set shares of Delta Air Lines lower. In a report covering another airline, I already warned for this and that was a month ago so you could really see this coming miles out. I believe investors were just delusional about the market realities.

In the outlook for the quarter ending September, we see that in terms of capacity recovery Delta Air Lines is not expecting much in capacity restoration, but is expecting lower fuel prices and revenues to be up compared to the same quarter in 2019. I would say that the guidance is not ambitious and there really is nothing bad with that I would say. Surely, investors do like all sorts of rosy outlooks but what are those worth if you can't achieve those? That is a thing that Delta found out in the second quarter and early July so they are really being more realistic in their forecasting and execution to build in more operational reliability than they did before.

So, the pace of the recovery has slowed but I believe that the ambition has shifted more towards the longer term and that is a realistic assessment I would say. Delta Air Lines has learned not to overpromise and underdeliver and I think it is important to understand that the miss is not so much the result of sustained lack of resources on capacity side. Higher fuel prices, for which I believe Delta has an appreciable strategy, eroded margins and when it comes to staffing they are 95% recovered on 82% capacity. The reality on staffing is that the employees are there, but they are not contributing to the full extent yet as they are flowing through different phases of the process either becoming more proficient or being in training. None of that really deteriorates the long term prospect for Delta Air Lines.

Delta Air Lines in my few has a cost conscious approach towards its fleet procurement and also tries to hedge fuel prices using its refinery while it also tries to diversify its revenue stream with sources other than just passenger and cargo transport with significant prospects for maintenance, repair and overhaul and its partnership with AMEX.

Conclusion

Looking at Delta Air Lines' results, I would say that while the miss is disappointing, it is not completely unexpected. It seems that everyone including Delta Air Lines itself was expecting strong unit revenue and capacity improvement to outgrow the fuel bill, but this wasn't the case because the fuel bill was higher than expected while the capacity ended up on the lower range.

The result was that investors discounted share prices of Delta Air Lines. However, I believe that the long-term objectives and strategy remain intact and therefore the strategy has not been discounted creating an opportunity to position for the longer term. The way I look at airlines is that they are less suitable for investment because airline shareholders always find a reason to dump their shares, but I would say that even with a recession, Delta Air Lines is positioned extremely well as an airline and the beaten down stock price is not reflective of its current performance or its future performance.

This article was written by

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His reports have been cited by CNBC, the Puget Sound Business Journal, the Wichita Business Journal and National Public Radio. His expertise is also leveraged in Luchtvaartnieuws Magazine, the biggest aviation magazine in the Benelux.

AeroAnalysis offers wide variety of services, ranging from providing data and cost models to consultancy possibilities. Check out our website for more information. Though we believe in the strong nature of our analysis, we are in no way giving buy or sell recommendations and advise everyone to do their own due diligence before making investment decisions.

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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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In summary, the aerospace sector is poised for steady growth led by fuel-efficient single-aisle aircraft and expanding markets in Asia-Pacific, with Airbus and Boeing as primary beneficiaries, alongside emerging players like COMAC.

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.

The push toward sustainability and innovation in digital technologies will be critical differentiators supporting production ramp-up and mitigating operational risks.

Title:

Content: People 's Daily Online > > Economy and Technology
Ministry of Industry and Information Technology: By 2027, the general aviation public service equipment system will be basically perfect
March 28, 2024 15: 45 | Source: People's Daily Online
Small number
Graphic: Shin Jiaping
Beijing, March 28 (Reporter Shen Jiaping) According to the official website of the Ministry of Industry and Information Technology, in order to promote the exploration and practice of new industrialization of aviation manufacturing industry, the Ministry of Industry and Information Technology recently issued the "General Aviation Equipment Innovation Application Implementation Plan (2024-2030)" (hereinafter referred to as the "Implementation Plan"), it is proposed that by 2027, the general aviation public service equipment system is basically perfect.
The implementation plan proposes that by 2027, China's general aviation equipment supply capacity and industrial innovation capacity will be significantly improved, the modern general aviation basic support system will be basically established, and the efficient integration of the industrial ecology will be initially formed, and the general aviation public service equipment system will be basically perfect.
By 2030, the new development model of the general aviation industry characterized by high-end, intelligent and green will be basically established, supporting and ensuring the "short-distance transportation + electric vertical takeoff and landing" passenger transportation network, "dry-branch - end" unmanned aerial vehicle distribution network, and meeting the needs of industrial and agricultural operations.
The implementation plan specifically proposes a total of 20 key tasks in five aspects.
The first is to enhance the industrial technological innovation capability.
Among them, the "Implementation Plan" requires electrification as the main direction of attack, taking into account hybrid power, hydrogen power, sustainable fuel power and other technical routes, accelerating the breakthrough and upgrading of aviation electric propulsion technology, and carrying out key technologies such as efficient energy storage, energy control and management, emission reduction and noise reduction.
Promote airworthiness forensics such as large and medium-sized fixed-wing aircraft, plateau helicopters, and unmanned aerial vehicles and put them into operation to achieve global emergency rescue capability coverage.
Support to accelerate the development and production of regional logistics and terminal distribution UAV and put into operation.
Support the development of intelligent air travel (SAM) equipment and promote the airworthiness of a batch of new consumer general aviation equipment such as electric vertical take-off and landing aircraft (eVTOL).
Encourage research and development of flying car technology, product verification and commercial application scenarios exploration.
Focusing on technical research, innovative applications, safety management, etc., give full play to the role of platforms such as the General Aviation Industry Innovation Alliance, and promote collaborative innovation in industry, education and research.
Second, improve the competitiveness of the industrial chain supply chain
The Implementation Plan proposes to accelerate the serialization development of general aviation power products.
Accelerate the development of 200kW class, 1000kW class turboshaft, 1000kW class turboshaft and other engines; continue to promote the mass delivery of 100-200 horsepower piston engines to achieve market scale application.
Combined with the needs of equipment in the fields of aviation emergency rescue, traditional operations, logistics and distribution, we will accelerate the promotion of unified standards, develop modular and standardized task systems, and improve product interchangeability and market compatibility.
Encourage leading enterprises to integrate resources, strengthen the leadership and organizational coordination of the industrial chain, supply chain and innovation chain, continuously improve the competitiveness of enterprises, improve after-sales service guarantee capabilities, and enhance the resilience and safety level of the industrial chain.
Based on the development foundation and resource advantages, we will build an integrated innovation and development industrial ecology from technology development, product development, demonstration and application to application in key areas such as the Yangtze River Delta, Guangdong, Hong Kong, Macao, Chengyu, Jiangxi, Hunan and Shaanxi.
The third is to deepen the demonstration application in key areas.
The "Implementation Plan" proposed, focusing on aviation fire suppression, aviation rescue, public health services, emergency communication / command four fields, in the Beijing-Tianjin-Hebei, Yangtze River Delta, northeast, central and western regions, border areas and other key areas, expand the demonstration application of aviation emergency rescue equipment.
Focus on the "dry - branch - end" logistics distribution demand, in the Yangtze River Delta, Guangdong, Hong Kong and Macao, Sichuan and Chongqing, Inner Mongolia, Shaanxi, Xinjiang and other key areas, encourage the development of UAV inter-city transportation and terminal distribution application demonstration, forming a large and wide range of aviation logistics distribution equipment system.
Support the research of low-altitude logistics solutions, explore new models of smart logistics, promote large-scale UAV branch logistics connection networking, and large-scale application of UAV distribution in cities, villages, mountains, islands and other emerging scenarios, and promote the construction of aviation logistics distribution network.
At the same time, to meet the needs of future urban air traffic, support relying on key regions such as the Yangtze River Delta, Guangdong, Hong Kong and Macao, and carry out application demonstration with eVTOL as the focus, and support the holding of related events.
For low-altitude tourism, aviation sports, private flights and business aviation consumption markets, the "General Aviation +" application demonstration will be carried out in key areas such as Shanxi, Inner Mongolia, Shanghai, Henan, Hunan, Hainan and Xinjiang.
Encourage areas with conditions to develop diversified low-altitude tourism products and promote the application demonstration of "general aviation + tourism".
Encourage large-scale and normalized operation demonstrations in key regions such as Sichuan and Chongqing, Inner Mongolia, Heilongjiang and Xinjiang, focusing on aviation training, short-distance transportation, agricultural and forestry plant protection, and geophysical exploration and inspection.
The fourth is to promote the construction of the basic support system.
The "Implementation Plan" requires that convergence applications such as 5G and satellite Internet be accelerated to support the exploration of low-space intelligent networking technologies and standards for the interconnection and information exchange of space and sky facilities.
Local governments are encouraged to integrate low-altitude infrastructure into urban construction plans and strengthen connectivity with urban transport systems.
Support the exploration and promotion of the construction of landing and takeoff points on the roof, ground, water and other scenes, improve the navigation and positioning, communication, meteorology, charging and other functional services, and form a multi-scene, multi-body, multi-level take-off and landing point network.
Adhere to the integration of general aviation standardization and technological innovation and application demonstration, and achieve the coordinated development of national standards, industry standards and group standards.
Build an unmanned aerial vehicle quality assurance and safety verification system, strengthen the safety and reliability assessment and verification of industrial UAVs and eVTOLs, and promote the formation of a number of industrial standards to support airworthiness certification.
Support colleges and universities to strengthen the construction of general aviation related disciplines and build a number of special colleges.
The fifth is to build an efficient integrated industrial ecology.
The "Implementation Plan" proposes that in emerging applications such as unmanned logistics and urban air traffic, leading enterprises are encouraged to explore the formation of integrated business models for product development, scene construction and demonstration operation.
Strengthen docking and exchanges with international organizations, promote bilateral multilateral cooperation, and support domestic enterprises to participate in the formulation of international rules and standard revisions in the fields of unmanned aerial vehicles and electric aircraft.
Implement the special project of "financial integration of science and technology industry", give play to the role of national production integration as a platform, make full use of financial means such as venture capital, and strengthen financing support for technology research and development in the general aviation equipment industry.
Promote the establishment of diversified equity general aviation equipment leasing companies, and encourage insurance companies to innovate products and services for the whole industry chain of general aviation equipment.
Encourage qualified regions to accurately guide all kinds of essential resources such as technology, capital and talent to effectively gather in general aviation manufacturing enterprises.
(Editor: Shen Jiaping, Gao Lei)
Public Number ： People 's Network Finance
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What is Airbus doing to achieve sustainable aviation?

It is working on adopting innovative strategies.

Business and general aviation are also exhibiting solid recovery and technological advancement.

Aircraft leasing continues to be a vital enabler for fleet expansion amid fluctuating demand.

Investors should monitor supply chain normalization, regulatory developments, and manufacturers’ innovation pipelines.

Key risk factors include labor constraints, geopolitical uncertainties, and fuel price volatility, which can impact production and airline profitability.

Title:

Content: AAR Corp.: Some Turbulence Along The Way

Jun. 19, 2022 10:17 AM ETAAR Corp. (AIR)

Summary

  • AAR has seen a solid recovery coming out of the pandemic, but is now seeing renewed pressure on its commercial customer base.
  • Shares have seen a big pullback in anticipation of more moderate results.
  • I still like the business, despite some turbulence here.
  • Looking for more investing ideas like this one? Get them exclusively at Value In Corporate Events. Learn More »

At the end of 2021, I concluded that it was time to fly high for AAR Corp. (NYSE:AIR) as it has seen a solid recovery in recent times. This was achieved despite the ongoing pandemic, as AAR has managed to deleverage its balance sheet while it has improved the operational performance. All that and a retreat from its highs earlier in the year created a decent set-up in my eyes.

Going Back

AAR is a large and independent provider of aviation aftermarket services which includes parts supply, repair & engineering, integrated solutions and manufacturing expeditionary services. These are provided to a broad range of aviation customers, including a well-balanced allocation between commercial and defense markets.

The integrated model and global operations means that the company services global commercial airliners, regional airliners, cargo airliners and government customers, as typically the commercial activities are a bit bigger than the defense operations.

The company posted flattish sales of just over $2 billion in the year 2020, but that fiscal year ended in May, with the pandemic only impacting the final quarter of the year, in which revenues were down a quarter. This triggered a pullback in adjusted earnings from $2.44 per share in 2019 to $2.15 per share.

Despite 20%-30% year-over-year revenue declines in the first three quarters of the fiscal year 2021, the company maintained profitability, even as it was trending at just $1.50 per share. In the end, the company posted sales at $1.65 billion in 2021 with adjusted earnings down to $131 per share, but that was not too bad in my book even given the set of circumstances faced by the business.

First quarter sales for 2022 rose 14% to $455 million as adjusted earnings came in at $0.52 per share, with net debt cut to just $80 million. With net debt equal to just 0.6 times "pressured EBITDA", and earnings trending above $2 per share already, a $38 valuation by year-end looked quite compelling, certainly as second quarter sales rose 8% to $437 million, and earnings improved a penny to $0.53 per share. Furthermore, the board announced a huge $150 million buyback program, equivalent to more than 10% of the outstanding share base.

Re-Rating Happened, And Now Reversed

After trading at $38 in December, shares rallied to the $50 mark in March, and traded at a high of $53 in recent weeks, before a substantial pullback was seen to $40 right now.

Other than some smaller corporate news flow, relatively little news has been announced other than the release of the third quarter results in March. Reported revenues rose 10% to $452 million, yet adjusted earning improved further to $0.63 per share. Management sounded upbeat despite the geopolitical issues as net debt was very modest at $64 million, allowing for more capital allocation decision to be made in the near term.

With earnings power trending closer to $2.50 per share, I was not surprised to see the shares run to a high of $50 per share, as this translated into a reasonable 20 times earnings multiple given that the company was still trailing its peak/normal performance and the balance sheet has been quite strong.

There have been some other issues in the mix of course, as greater geopolitical uncertainty will likely boost defense spending, but the contrary is the case as well, as certainly inflationary and economic growth pressures will likely hurt the commercial aviation market, something discounted in recent weeks.

Final Thought

Truth is that I was more constructive on AAR at $38 in December than I am today. Of course, we have seen a retreat with the pandemic and stronger third quarter performance than anticipated, all of which is positive. And while it is even the case that defense activities should have a rosier outlook, the commercial aviation market has been hit by high fuel prices, inflationary pressures and labor shortages, all having a huge impact in all likelihood as the pandemic remains still a wildcard.

In the meantime, markets have taken a step lower as well, so flat performance year to date marks quite an outperformance. All of this makes me still upbeat on the long-term prospects for the name, but I am not yet willing to buy the most recent dip.

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This article was written by

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The writer is a long term value investor and M.Sc graduate in Financial Markets with over 10 years experience. Value can be found in both long and short ideas and uses options to enhance the risk-return profile of investment ideas. Disclaimer: This article provides opinions and information, but does not contain recommendations or personal investment advice to any specific person for any particular purpose. Do your own research or obtain suitable personal advice.
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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Overall, aerospace stocks best positioned for long-term growth are those with strong order backlogs, innovation leadership in fuel efficiency and sustainability, and balanced exposure across growth markets and defense contracts [e69bcbbb-8533-4b79-b051-47a3354fef0f_73217340; ce100173-e198-486d-9705-b5584a15779f_257721921; 65a6d821-4ded-4ba5-874a-2aa5ee48ba5e_72581204; 8e828b46-530b-4cdd-8592-110e24dde5a0_841769098; d0868668-650b-41ae-bf3a-02d9a523015c_20700738].

What impact shall the carbon tax to be imposed by EU in 2026 have on aircraft market?

It is conducive to the sales of new aircraft with better fuel efficiency.