Boeing (BA) May Retake Title as Largest Aircraft Manufacturer Following Solid 2012
Tweet
Share
E-mailGet Alerts BA Hot Sheet
Join SI Premium – FREE
Boeing (NYSE: BA) may be inching closer to regain the title of top aircraft manufacturer as orders hit a new multi-year high in 2012.
According to a release Thursday night, Boeing delivered 601 commercial jets last year, the first time Boeing topped rival Airbus since 2002. The company was looking for deliveries between 585 and 600 units.
Boeing noted that "unfilled commercial airplane orders at the end of the year stood at 4,373, the most in company history." It's 737 MAX had new orders of 914 for bookings of over 1,000 units. The 737 MAX is a competitor to the Airbus A320neo, which was introduced in 2010, while the 737 MAX made its debut in 2011. Deliveries for the A320neo will start in 2015 and deliveries for the 737 MAX will commence in 2017.
But, the rush for airlines to purchase jets might be coming to a head. One analyst notes that some were rushing in as established airlines were rushing to keep up with orders from emerging rivals, meaning capacity might be outpacing demand. In addition, government-backed export financing will become costly in commercial airplane-producing nations like the U.S. and U.K.
The WSJ quoted one spokesperson in refuting the idea that supply and capacity are outpacing demand.
Latest data from the International Air Transport Association (IATA) sees global airlines profiting $6.7 billion in 2012, which is down 31 percent from the same period last year.
The title for largest aircraft manufacturer will be decided on January 17th, when Airbus is expected to release 2012 data.
Shares of Boeing are flat in early trading Friday.
According to a release Thursday night, Boeing delivered 601 commercial jets last year, the first time Boeing topped rival Airbus since 2002. The company was looking for deliveries between 585 and 600 units.
Boeing noted that "unfilled commercial airplane orders at the end of the year stood at 4,373, the most in company history." It's 737 MAX had new orders of 914 for bookings of over 1,000 units. The 737 MAX is a competitor to the Airbus A320neo, which was introduced in 2010, while the 737 MAX made its debut in 2011. Deliveries for the A320neo will start in 2015 and deliveries for the 737 MAX will commence in 2017.
But, the rush for airlines to purchase jets might be coming to a head. One analyst notes that some were rushing in as established airlines were rushing to keep up with orders from emerging rivals, meaning capacity might be outpacing demand. In addition, government-backed export financing will become costly in commercial airplane-producing nations like the U.S. and U.K.
The WSJ quoted one spokesperson in refuting the idea that supply and capacity are outpacing demand.
Latest data from the International Air Transport Association (IATA) sees global airlines profiting $6.7 billion in 2012, which is down 31 percent from the same period last year.
The title for largest aircraft manufacturer will be decided on January 17th, when Airbus is expected to release 2012 data.
Shares of Boeing are flat in early trading Friday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Boeing, RTX $4.5b Aircraft Sale to Qatar Gets Tentative Approval
- This consumer stock is trading at "discounted valuation", Morgan Stanley says
- Analyst explains why you should buy the dip in this U.S. retail stock
Create E-mail Alert Related Categories
Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
