The outlook for the aerospace industry over the next 18 months is “positive” with the ongoing recovery of commercial aerospace operations driving growth, according to Moody’s Investor Service.

“We forecast operating profit for our 26 largest rated aerospace and defence companies to grow by about 14 per cent in 2022 and about 20 per cent in 2023,” the outlook said.

“The ongoing recovery of commercial aerospace operations will drive this growth. We forecast a small contraction in defence-only companies’ operating profit in 2022, driven by supply chain restrictions and a higher proportion of programmes in less profitable development stages, with a return to solid growth in 2023 as spending on defence increases.”

‘Gradual increases in wide-body aircraft production’

Moody’s outlook said Airbus would “increase monthly production of A320 narrow-body aircraft to around 60 in 2023” while Boeing would “increase monthly production of its 737 MAX narrow-body aircraft to 35 in 2023, from the current level of 31”.

The firm said: “We also expect gradual increases in wide-body aircraft production from current relatively low rates, boosted by the recent restart of deliveries of Boeing’s 787 Dreamliner and a recovery in long-haul air travel.”

Subscribe to the FINN weekly newsletter