Boeing (BA) and rival Airbus (EADSY) continued to see strong demand for their narrow-body passenger jets at the Farnborough Airshow on Tuesday.
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Air Lease (AL) announced orders and commitments for up to 78 Boeing airplanes, including 75 737 Max 8s and three 787-9 Dreamliners. The deal is valued at $9.6 billion at current list prices, but airlines typically get a discount for large orders.
Meanwhile, Airbus announced an unnamed, existing customer had signed a memorandum of understanding for 75 A320neos and 25 A321neos. At list prices, the deal is worth $11.5 billion.
Airbus also confirmed an order for 60 A220-300 jets valued at $5.4 billion to investors led by JetBlue (JBLU) founder David Neeleman, who is looking to start a new carrier.
Here is some of the other dealmaking going on at Farnborough Tuesday:
- GE Capital Aviation Services agreed to 20 firms orders of Boeing 737-800 converted freighters with an option for 15 more.
- Russia's Volga-Dnepr Group and CargoLogicHolding signed a letter of intent for 29 Boeing 777 freighters and confirmed an order for five 747-8 freighters.
- Aviation Capital Group announced an order for 20 737 Max 8 jets valued at $2.3 billion.
- Airbus announced an order for eight A350-900s in a deal valued at $2.6 billion. But the aerospace giant didn't disclose the customer.
Boeing stock rose 0.2% at 356.88 on the stock market today, working on a flat-base buy point of 374.58. Airbus stock advanced 0.5% to 31.47, remaining in buy range.
$15 Trillion Forecast
Boeing raised its 20-year industrywide outlook for new commercial airplane demand by 4.1% to 42,730. The airplanes themselves are valued at $6.3 trillion, but Boeing sees a total market of $15 trillion when services are included.
The narrow-body market is seen growing fastest with expected demand for 31,360 new aircraft, valued at $3.5 trillion, up 6.1% from last year. Airlines in China and Southeast Asia as well as emerging low-cost carriers make up the bulk of demand.
On the widebody side, Boeing sees demand for 8,070 new airplanes valued at nearly $2.5 trillion as airlines look for more fuel-efficient replacements.
Forty-four of the new airplanes over the next 20 years will be needed to replace older jets. More than 900 planes currently in operation are over 25 years old.
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