Air travel demand is back
In the past few years, a decline in air travel has shaken the aviation industry. However, massive growth has occurred since 2023, given increased airline sales and traveling. According to the International Air Transport Association, global flight capacity is expected to return to normal in 2024, with about 40 million flights (an increase from 38.9 million in 2019) that are projected to carry a record 4.7 billion people (an increase from 4.5 billion people in 2019). The overwhelming demand from passengers plus a general shortage of planes has led to an increase in plane ticket prices. Airlines are spending billions of dollars on new planes to expand their supply and keep ticket prices reasonable.
Airbus thrives with increased travel demand
Airbus maintained its position as the leading plane manufacturer for the fifth consecutive year against its rival Boeing. Airbus reported record annual jet orders with 2,319 gross orders last year, more than twice the number in 2022 and 29.1% higher than its 1,796 record set in 2014. Though Airbus is thriving with the return of travelers, the company has its work cut out for it. A Reuters report said that Airbus delivered 735 of its planes last year, which leaves its order backlog at a total of 8,598. In addition, Airbus’ popular A320neo plane will be sold out until the early 2030s.
Boeing grows orders but struggles with setbacks
Boeing reported its highest order total since 2014 as well, with 1,456 gross orders in 2023 and 1,314 net orders after cancellation. But despite the increase in orders, Boeing is in trouble after a panel on its 737 MAX 9 recently blew out during an Alaska Airlines flight. Nobody was killed but it struck fear amongst the passengers and future fliers of Boeing. In 2019, Boeing also dealt with plane quality issues after having two plane crashes within a year; all passengers were killed. The crashes led to a global grounding and subsequent pause in production of the Boeing jet. Airbus ultimately overtook Boeing as the world’s biggest plane maker during the groundings and has maintained this position since then.
