The Paris Air Show, which returned after a four-year hiatus due to the Corona pandemic, witnessed a surge in orders for commercial aircraft, providing a much-needed boost to the aviation industry. As air travel rebounded strongly post-pandemic, billions of dollars worth of orders were placed for new planes, signaling a positive outlook for the sector.
The biennial event, held in Le Bourget, north of Paris, serves as a platform for airlines, aircraft lessors, and manufacturers to announce new aircraft orders and strategic partnerships. This year’s air show concluded with a total of 1,266 orders, the highest since the Farnborough Air Show in 2018 when the industry was thriving before the COVID-19 crisis.
However, while the number of announced orders was near record levels, analysts had expected more orders from Middle Eastern airlines. The Middle East is one of the fastest-growing regions in terms of air passenger traffic, thanks to its strategic location as a hub for international flights and the ambitious economic expansion plans of various countries, including the development of their own tourism industries.
Surprisingly, the three largest carriers in the Gulf – Emirates, Etihad, and Qatar Airways – placed fewer orders than anticipated. The only significant order from the Middle East came from Saudi low-cost airline Flynas, which ordered 30 A320neo aircraft. Additionally, it was revealed that Air Algerie had placed an unannounced order for eight Boeing 737 MAX 9 single-aisle aircraft.
One notable highlight of the air show was the debut of Saudi Arabia’s new airline, Riyadh Air, owned by the kingdom’s influential Public Investment Fund. The airline aims to carry over 100 million passengers to more than 100 destinations by the end of the decade and has ambitious expansion plans. While there were rumors of a large order for Airbus planes, Riyadh Aviation CEO Tony Douglas clarified that no order would be announced at Le Bourget. In March, the airline had announced a provisional order for up to 72 Boeing 787 Dreamliners, and Airbus hopes to strike a deal with the carrier in the future.
The International Air Bureau (IBA), an industry consulting firm, had expected around 2,100 orders at the air show. The current backlog of orders in the region is the lowest in a decade, indicating the need for fleet renewal. The IBA predicts an average annual fleet growth rate of 5% over the next ten years. Stuart Hatcher, the chief economist at IBA, expressed surprise at the lack of orders from Emirates but expected some action from Royal Air Maroc and increased requests from Saudi Arabia.
Despite the lower-than-expected orders from the Middle East, the Paris Air Show provided a significant boost to the aviation industry, signaling a strong recovery from the pandemic-induced slump. The show’s success reflects the growing confidence in air travel and the industry’s resilience in the face of challenges.
What were the key focuses and developments in areas other than commercial aircraft, such as electric aircraft, urban air mobility, and sustainable aviation, at the Paris Air Show
Ntries in the region. Despite this, Middle Eastern carriers played a relatively subdued role at the Paris Air Show, with only a handful of orders.
Instead, the major players in terms of orders were primarily from global airlines and aircraft leasing companies. Airlines such as United Airlines, Delta Air Lines, and American Airlines placed substantial orders for new planes, highlighting their confidence in the industry’s recovery.
Similarly, aircraft leasing companies like Avolon, AerCap, and GECAS also made significant orders, showcasing their belief in the long-term demand for leased aircraft. With air travel projected to grow in the coming years, leasing companies play a crucial role in meeting the demand for new planes, especially from smaller and emerging airlines.
The surge in orders during the Paris Air Show was a welcome relief for aircraft manufacturers, who had been severely impacted by the pandemic. Companies like Boeing and Airbus suffered from cancellations and delays as airlines faced financial difficulties and reduced their fleets. The show’s success in generating new orders will not only help these manufacturers regain their footing but also contribute to the revival of the entire supply chain, including suppliers and subcontractors.
Beyond the commercial aircraft sector, the Paris Air Show also showcased developments in other areas of aviation. Electric aircraft, urban air mobility, and sustainable aviation were among the key focuses of this year’s event. Several companies presented their prototypes and plans for electric and hybrid-electric aircraft, signaling the industry’s commitment to reducing its environmental footprint.
The growing interest in urban air mobility, which refers to on-demand air transportation within urban areas, was also evident at the show. Companies like Airbus, Boeing, and Volocopter showcased their concepts for air taxis and urban mobility solutions, highlighting the potential for a transformation in how people commute within cities.
Sustainable aviation was another major theme at the Paris Air Show. Airlines, manufacturers, and organizations emphasized their commitment to decarbonizing the industry and reducing emissions. Technologies like sustainable aviation fuels, hydrogen-powered aircraft, and electric propulsion systems were discussed as potential solutions to achieve these goals.
Overall, the Paris Air Show’s successful return after the pandemic-induced hiatus provided a much-needed boost to the aviation industry. The surge in orders for commercial aircraft, coupled with the emphasis on electric aircraft, urban air mobility, and sustainable aviation, showcases the industry’s resilience and determination to recover from the challenges posed by the pandemic. With air travel gradually returning to pre-pandemic levels, the outlook for the sector appears positive, and the Paris Air Show played a crucial role in reinforcing this optimism.
