A new report from ADS Group has revealed that aircraft orders grew by 129% in the first half of 2023 compared to 2022 figures. A record-breaking 1,667 orders were placed in the first six months of this year with June and Paris Airshow announcements boosting the global aircraft order book.
According to the ADS Economics Briefing, there was strong confidence in the single-aisle aircraft market, with 1,398 single-aisle aircraft ordered year to date, the highest order number since records began in 2010.
“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,” said Aimie Stone, chief economist at ADS Group.
“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.”
According to the report, aircraft manufacturers delivered 582 aircraft during the first half of the year, an increase of 13% on the same period in 2022. There was also rise in order backlogs, which grew 11% in H1 2023 to 14,462 aircraft – it was just 1% in 2022. At current production rates, the aircraft backlog represents more than 10 years’ worth of work and a value of £218 billion to the UK.
However, the industry continues to see pressure on UK supply chains, with half of respondents to an ADS survey in Q2 identified inflation as having a significant impact on their ability to grow, with the same proportion concerned about the costs of raw materials and inputs.
“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,” said Kevin Craven, CEO of ADS.
“For UK industry to fully realise the manufacturing potential offered by the strong aircraft backlog and record order book seen at H1 2023, roadblocks – including supply chain issues and labour 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.”