Following decades of turmoil and the 9/11 tragedy, the airline industry has made more money the last two years than the prior thirty and the battle between Airbus and Boeing continues to be fierce, with Airbus once more leading Boing in sales, Reuters reported.
For the fifth year in a row the European aerospace company outpaced American based Boeing. Airbus announced last week that they had secured 1,109 aircraft orders for 2017, compared to 912 for Boeing.
Boeing was outpacing Airbus for most of the year, however at the end of the year Airbus pulled ahead with year ending sales flurry. Airbus might have sold more aircrafts for the year, but Boeing delivered more and set a new industry record in 2017, surpassing their previous record setting year of 2015.
Boeing delivered 763 airplanes to customers around the globe, beating their previous industry record on 762. Airbus delivered 718 aircrafts, setting their own company record for delivery.
A massive deal which occurred during the Dubai Air trade show in late December put Airbus over the top, in the head to head competition. An order for 430 A320 neo jetliners from Indigo Partners was the largest in Airbus history and secured the sales title for 2017 from Boeing; who announced an order for 175 of its 737-Max planes at the same trade show.
The aircraft production industry is a trillion-dollar market dominated by Airbus and Boeing. There are newer entrants from China, Russia and Canada, looking for a piece the market as well.
This impressive number of jet sales coincides with the 8th straight year of airlines having profitable numbers. The International Air Transport Association, which tracks air industry performance, anticipated airlines would make about $34.5 billion in profits for 2017.
Boeing vice president of marketing, Randy Tinseth credits the success of the airline industry to increasing competition and trade, cheaper travel, and a generally healthy global economy, CNN money reported. Airlines are consistently flying at near capacity and industry experts expect this trend to continue in 2018.
A decline in ticket prices and lower cost airlines continuing to expand their regional and international routes, result in more customers flying for business and pleasure. Discount tickets and low-cost airlines are greatly aided by historically low fuel prices. About nineteen cents of every dollar is spent on jet fuel, according to IATA, which has consistently fallen since 2008 when it was more than 35 cents when oil hit record prices.
By: Jared Evan