Boeing And Airbus: The Order Battle In June 2016

| About: Airbus Group (EADSF)


Boeing is still in the lead.

Order overview of July will give better insight on possible slowdown in order inflow.

June figures are skewed due to concentration of order announcements around the 2015 Paris Air Show.

The order battle between Boeing (NYSE:BA) and Airbus (OTCPK:EADSF)(OTCPK:EADSY) is one of the ways for Boeing and Airbus to flex their muscles, next to marketing their products as the best solution with the highest fuel efficiency and passenger comfort. Despite the fact that the orders (in terms of value) are in no way a reflection of financial performance, it is important to have a look at the order inflow since it gives a nice idea of which manufacturer offers the best mix of discount, comfort, slot availability and efficiency.

In this article, I will have a look at the order inflow during June for both manufacturers and have a look at their role in the narrow and wide body market.

June Overview

In June, Airbus and Boeing, together, hauled in 39 orders compared to 288 in the same month last year. This figure is skewed due to the Paris Air Show taking place in June last year. Looking at how the orders were divided in June, Airbus can be marked as the 'winner'. Airbus received 27 orders, while Boeing received 12 orders.

Boeing's order inflow was a mix of wide and narrow body aircraft. The full report can be read here.

Boeing booked a total of 12 orders:

  • FedEx (NYSE: FDX) ordered 6 Boeing 767 Freighters, part of the mega order it placed with Boeing.
  • An unidentified customer ordered 1 Boeing 787-9
  • 2 unidentified customers ordered 1 Boeing 737 MAX BBJ each
  • Okay Airways ordered 3 Boeing 737 MAX, part of a deal that Boeing announced in February 2016

Airbus's order inflow during the month of June was 67% lower month-over-month but more than 2 times higher compared to Boeing's order inflow. The full report can be read here. During the month of June all orders were for the Airbus A320.

Airbus booked 27 orders:

  • An undisclosed customer ordered 8 Airbus A320neo airframes and 7 Airbus A321ceo airframes
  • A second undisclosed customer ordered 5 Airbus A321ceo aircraft
  • A third undisclosed customer ordered 3 Airbus A320neo aircraft and 4 Airbus A321neo aircraft

In terms of units Airbus had a better month than Boeing. Also in terms of value, Airbus had the upper hand, booking $1.4B worth of orders versus $1.0B for Boeing.

Overview order division

Click to enlarge

Figure 1: Infographic Orders June (Source:

Airbus received 25 cancellations and 19 swaps, leaving the jet maker with 183 net orders year-to-date. Boeing is clearly in the lead: The jet maker received 310 orders and 47 cancellations, bringing the net orders to 263.

Order inflow in May was focused on narrow body aircraft: Over 80% of the orders was for a narrow body aircraft.


Both Boeing and Airbus had a very soft June month, mainly caused due to some order announcement being pushed into July for the Farnborough International Air Show.

Boeing and Airbus so far have been following different paths:

Airbus's orders from January up until June fell by roughly 40% year-over-year, due to soft order inflow so far in 2016. Boeing's orders were 2% lower. Both figures are somewhat skewed by the Paris Air Show event in June 2015. So far, Boeing is having a strong year, not only booking more orders than Airbus but also roughly matching last year's order inflow, and there should be some bigger order announcements coming up in July.

The total order inflow for both jet makers combined was 23% lower. Sales have been strong so far, especially for Boeing but not big enough to offset the lower Airbus sales and the high order inflow in June 2015. I am, however, convinced that after July we will be seeing total orders showing year-over-year growth again.

Many analysts are expecting a slowdown in order inflow. I expect a slowdown in order inflow as well, but so far, 2016 is showing some robust order inflow and Boeing has been able to write most of those orders in its order book so far.

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Disclosure: I am/we are long BA.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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