In a remarkable demonstration of industry resilience, the global aircraft sector has achieved a staggering feat by amassing an unprecedented 1,667 orders in the first half of 2023. According to the latest report from ADS Group, a prominent trade association encompassing aerospace, defence, security, and space organizations, this phenomenal achievement underscores a remarkable surge of 129% in aircraft orders compared to the corresponding figures of 2022.
The pinnacle of this extraordinary achievement is attributed to the first half of 2023 emerging as the most prosperous period for aircraft orders since ADS records were established in 2010. Notably, the combined influence of the resplendent month of June and the Paris Airshow announcements significantly bolstered the global aircraft order book.
Within the domain of single-aisle aircraft, the orders reverberate with unwavering market confidence, evidenced by an astounding tally of 1,398 single-aisle aircraft ordered year-to-date. This figure not only shatters previous records but also underscores the peak of optimism coursing through the industry.
Mirroring this triumphant trajectory, the backlog of aircraft orders burgeoned by an impressive 11% during H1 2023, culminating in a substantial count of 14,462 aircraft. In contrast, the corresponding period in 2022 only experienced a marginal one per cent increase. It is noteworthy that at present production rates, the aircraft backlog represents an astonishing cache exceeding a decade’s worth of labor, bearing an estimable value of £218 billion for the UK.
The first half of the year witnessed aircraft manufacturers delivering a commendable total of 582 aircraft, marking an overall augmentation of more than 13% compared to the same period in 2022. An intriguing highlight of H1 2023 is the delivery of 85 wide-body aircraft, indicating a noteworthy surge of 23% year-on-year.
Aimie Stone, Chief Economist at ADS Group, underscored, “ADS continues to highlight returning levels of confidence in the sector. Considering current production and delivery dates, ADS have uplifted our forecast of 1,215 aircraft deliveries by the end of this year. This would represent the largest number of aircraft delivered in more than three years, and is a strong signal that aircraft manufacturing is on its way to pre-pandemic trends, despite ongoing supply chain issues.”
As the aviation landscape basks in the glory of record-breaking orders and resurgent delivery figures, it is crucial to acknowledge the underlying strains within the industry’s supply chain. While exuding buoyant optimism, the survey conducted by ADS reveals that a notable 50% of respondents identified inflation as a significant impediment to growth. Similarly, an equivalent proportion expressed concerns about the escalating costs of raw materials and inputs.
CEO of ADS, Kevin Craven, aptly encapsulated the broader narrative, stating, “The roaring aircraft orders made during H1 2023 are a very welcome sign of increasing confidence in the sector. Separately, growth in delivery figures support our ADS expectations of a return to pre-pandemic levels of manufacturing in 2024. For UK industry to fully realize the manufacturing potential offered by the strong aircraft backlog and record order book seen at H1 2023, roadblocks – including supply chain issues and labor shortages affecting growth – need to be addressed. In the coming months, ADS will continue to work with our industry and political stakeholders to ensure focus on the current issues affecting the aerospace sector.”