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Opinion

Half-year results drive optimism in aviation and aerospace

Opinion WritersBy Opinion WritersJuly 27, 20222 Mins Read
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The second quarter of 2022 has seen a continuation of the steady recovery in market confidence, with 728 global aircraft orders placed. Demand for single-aisle aircraft continues to dominate market recovery, with 635 single-aisle orders placed, and 93 widebody orders.

Aircraft manufacturers delivered 513 aircraft during the first half of the year, the most since 2019 and an overall increase of 13% on the same period in 2021.

Whilst UK aerospace manufacturing output remains weaker than February 2021, with just 0.3% growth in May 2022, there are positive signs of recovery. Aircraft manufacturers have begun implementing planned production rate increases that demonstrate this.

Following announcements of a production rate ramp up, ADS is maintaining its 2022 forecast for global aircraft deliveries, which is currently issued at 997 aircraft. Despite aircraft manufacturers being slightly ahead of the forecast, the manufacturing environment continues to be challenging, with supply chain pressures and continuing rising costs of materials, some of which have increased by up to 40%.

The latest UK flight data continues to show encouraging signs of recovery, with UK flight arrivals and departures now recovering to under 15% from comparable data since 2019. Recovery remains stable and upward trend since February and may be boosted by departures for the summer break.

The backlog of aircraft remains above 13,000 for the seventh consecutive month and continues to rise with demand, and represents several years’ worth of work and value of £200bn to the UK aerospace sector.

The Q2 order book is a strong sign of the continued recovery of the aerospace and aviation sector. Orders and deliveries are both increasing as the demand for cleaner, greener and fuel-efficient aircraft continues to build.

The ADS forecast remains close to 1,000 aircraft for the first time in two years, and manufacturers are currently ahead of the forecast despite the challenging operating environment. This is an important testament to the continued progress of the aviation and aerospace industries.

Last week, the global aviation and aerospace sectors met during Farnborough International Airshow, and throughout the week, partnerships have been forged that will set the course of the industry for the next 25 years. Clear and ambitious plans for the future have been set and there is renewed optimism across industry. I look forward to seeing this continue.

ADS is the UK trade organisation representing the Aerospace, Defence, Security and Space sectors, with more than 1,100 member businesses.

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