Airlines drive multi-year Boeing and Airbus backlogs
The bull case for commercial aircraft manufacturers is driven by airlines facing aging fleets, high fuel costs, and rising premium travel demand, resulting in a six-year order backlog.
The argument
The guest argued that airlines are keeping orders active despite high fuel bills because newer jets are more fuel-efficient and cost-effective. Additionally, airlines are expanding international routes and upgrading premium cabins to target high-income travelers, which has extended delivery timelines due to regulatory certification delays.
The thesis, stress-tested
✓ What validates it
- ✓Airbus hitting its target of delivering 900 commercial planes in the year
- ✓Boeing successfully ramping up its new 737 MAX assembly line in Everett
▸ Risks discussed
- ▸Regulatory certification delays for new cabin designs
- ▸Supply chain bottlenecks limiting production ramp-ups
Hear it yourself
"And as these things go, they each now have order backlogs thousands of planes deep and which are only growing as airlines demand spiffy new jets. Marketplace's Henry App takes it from there."
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