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Boeing Vs Airbus: How Things Are Poised to Fare in 2021?

After a disastrous 2020, 2021 is expected to show improved air travel statistics, led by fewer restrictions on flying, re-opening of borders along with the widespread availability of vaccines. So far, the data reflects an optimistic trend, with seasonally adjusted revenue-passenger-kilometers (RPKs) having increased 5.1% sequentially in April 2021.

Considering such a positive trend, now let’s have a look at how the current market confidence had an impact on aerospace giants, Boeing BA and Airbus SE EADSY, in 2021 so far.

Boeing Vs Airbus: 2021 Numbers

Boeing ended May 2021 on a brighter note compared to Airbus. Boeing registered a total of 73 aircraft orders throughout the month, overshadowing Airbus’ numbers, registering only seven aircraft orders. Interestingly, Boeing’s 737 MAX aircraft accounted for the greater part of overall orders, with 34 737 MAX orders coming from Southwest Airlines LUV.

On a year-to-date basis, both aircraft manufacturing giants posted improved figures when compared to 2020, for almost the same time frame. At the end of May 2021, Boeing remained ahead of Airbus in terms of orders received, as it bagged orders for 380 aircraft, whereas Airbus could only manage orders of 94 aircraft in total. On the contrary, Airbus remained way ahead in delivery terms for the period January to May 2021, as it delivered 220 aircraft to 61 customers compared to Boeing’s 111 deliveries to 30 customers worldwide.

Recently, Boeing delivered a total of 17 airplanes to carriers in May, again lagging Airbus' 50 deliveries to 32 customers by a fair distance.

How is the Rivalry Faring in 2021?

Although Boeing has been able to topple Airbus in terms of orders so far in 2021, it is still way behind its rival in terms of deliveries made and other aspects. Notably, Boeing did manage to record a massive turnaround considering the turmoil they were in. However, it has a long list of issues to deal and comply with.

Per a Reuters report, Boeing continues to fix its electrical system related to the troubled 737 Max. A total of 106 aircraft were grounded globally in April due to problems related to the electrical power system. This could later have a serious impact on its operating results as the company might have to again ground some of its jets.

Moreover, widebody jet deliveries for both companies have been relatively low due to decreased demand in long-haul operations amid travel restrictions worldwide. With the global surge in coronavirus cases, both aircraft giants are likely to witness some degree of turmoil in the coming months.

It is difficult to predict the future of this rivalry precisely amid all these uncertainties. But keeping into consideration the recent order growth for Boeing’s 737 Max, Airbus will have a difficult time regaining its number one position in 2021. Meanwhile, as Airbus continues to deliver more aircraft than its rival, its revenue growth is likely to be better placed at the end of 2021 than Boeing.

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The Boeing Company (BA) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
Airbus Group (EADSY) : Free Stock Analysis Report
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