Airbus scores widebody jet wins in two Boeing-leaning markets

Airbus SE secured two major orders from the flagship carriers of Japan and South Korea, giving the European manufacturer a strategic win in markets that have traditionally leaned toward arch-rival Boeing Co.

Japan Airlines Co. said it’s buying 21 Airbus 350-900 as well as 11 A321neos, breaking Boeing’s exclusive hold as the sole single-aisle jet supplier for the carrier. Boeing brought home a smaller deal, for 10 Boeing 787 widebody jets. Two hours later, Korean Air Lines Co. announced the purchase of 33 Airbus A350 jets in a winner-takes-all contest that left Boeing empty-handed. 

The commercial successes will help Airbus deepen relations with two carriers that for decades built the bulk of their fleets around the US manufacturer. Boeing has been in crisis for several months following a near-catastrophic accident on a 737 Max 9 model in early January. Nevertheless, the carrier has managed to log several big orders since then, and loyal carriers like Ryanair Holdings Plc have pledged their support to the US company as it seeks to improve its manufacturing processes. 

Airbus rose as much as 1.3% in Paris trading. The stock has gained about 21% this year. By contrast, Boeing has lost about 28% in value.

This year is shaping up to be buoyant for widebody aircraft orders, with Qatar Airways QCSC seeking to purchase as many as 150 twin-aisle jets. Cathay Pacific Airways Ltd. in Hong Kong is also considering a sizable deal involving dozens of mid-sized widebody jets. There are also big narrowbody orders on the horizon with Cebu Air Inc. looking to close out an order for as many as 150 planes.

Korean Air mostly ordered the larger variant of Airbus’s A350 widebody model. Of the almost 160 planes in Korean Air’s fleet, 65% are from Boeing. The carrier still has about 60 Boeing jets on backlog and about 75 with Airbus after its latest order announcement. JAL has about 155 Boeing jets in its fleet with just 17 Airbus jets, the company’s latest financial presentation shows.

Demand for larger jets — and bulk buying, bullish bets on future travel growth, and strains on planemakers’ ability to meet demand for single-aisle aircraft this decade is fueling a surge in widebody orders over the past 12 months.

Last year saw a series of bumper orders including an order for 90 777X jets from Emirates Airline and 50 from United Airlines Holdings Inc. for the 787-9. Airbus scored big with 70 widebodies out of 220 ordered by Turkish Airlines among other deals. Thai Airways International PCL unveiled an order for 45 787 Dreamliners at the Singapore Airshow in February, having agreed the deal in December. 

Both major planemakers anticipate the Asia Pacific to account for 40% of global air traffic in two decades, up from one-third, according to their longterm projections.