August 15, 2013
Industry research firm IBISWorld, Los Angeles, has updated a report on the global commercial aircraft manufacturing industry.
According to the report, the global commercial aircraft manufacturing industry remained profitable during the recent recession thanks to strong demand from emerging economies and a backlog of orders for major players. Rising fuel prices are expected to boost demand for new, fuel-efficient aircraft over the next five years, giving the industry a positive outlook for the future.
Revenue declined 4.1 percent in 2009, but new aircraft deliveries and renewed global economic growth have since allowed revenue to recover. After several delays, Boeing delivered the 787 aircraft in 2011; rival company European Aeronautic Defence and Space Co. (EADS) also has experienced strong demand for its A380 and A320neo aircraft. As a result of these trends, IBISWorld expects industry revenue to grow at an annualized rate of 1.7 percent over the five years to 2013 to total $270.6 billion, including a 2.5 percent increase in 2013 alone.
Commercial aircraft trade is estimated to increase an annualized 2.8 percent from 2008 to 2013. Industry profitability also moderately increased over the past five years, though this growth was partly due to the recovery from the recession. Furthermore, falling steel and aluminum prices over the period contributed to lower input costs for industry operators. Aircraft manufacturers also benefited from rising oil prices, which bolstered downstream demand for new, fuel-efficient aircraft.