Aircraft order backlog at record high
Aircraft orders continue to gain momentum - as the aircraft order backlog hit record breaking heights at the end of Q1 2024 - and 30,000 engines on firm order reflects increased confidence by manufacturers, yet challenges and kinks with production capacity are causing a downward trend (year on year) in aircraft deliveries.
Image copyright Shutterstock
ADS reports that 301 aircraft orders placed in Q1 2024 represents a 9% improvement on the first quarter of 2023, while ADS records highlight that the number of aircraft on backlog order is 17% ahead of 2023, at 15,812. Notably, there are 30,000 aircraft engines on firm order.
However, the latest report from ADS does not present an overall positive picture. The 227 aircraft delivered in Q1 2024 is 12% less than the same quarter of 2023, reflective of production capacity challenges and delivery delays which industry have been reporting since mid-2023.
ADS macro view: A mounting challenge but not insurmountable
Aimie Stone, Chief Economist at ADS said: “At this stage of the year, it’s notable but not hugely concerning to see these year on year dips in the aircraft market.
“Industry is not complacent. Challenges associated with rate ramp ups alongside growing skills challenges, supply chain issues, regulatory matters and delivery delays will continue to have an impact.
“As highlighted in the ADS Manifesto 2024, in order to effectively combat growing global instability, the UK government must fortify its commitment to our supply chains, form an active – and close – collaboration council with industry and work across borders to strengthen our trade and export strategy.
“Moving throughout 2024, further aircraft announcements primarily hinge on major international events – including potential changes in administrations in the UK and US. Politics notwithstanding, we would actively anticipate a number of new regulatory and order book announcements at the upcoming Farnborough International Airshow.”
ADS Group is the trade association for the aerospace, defence, security and space industries, representing over 1,300 members.