June 7, 2023

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Airbus business jet sales are rising despite the Ukraine crisis and a lockdown in China, report says


Breeze Airways Airbus A220-300

Breeze Airways’s first Airbus A220-300.Breeze Airways and Airbus

  • The company has made five business jet orders in 2022, four of which include its latest A220 model.

  • The A220 made no sales in 2021, as business travel was difficult during the pandemic, per Bloomberg.

  • The uptick in corporate jet sales are occurring despite more recent setbacks such as the Ukraine war.

Sales of Airbus’s latest business jet are rising, following a difficult period during the pandemic, Bloomberg reported.

The company has received five business jet orders in 2022, four of which include its latest A220 model, Benoit Defforge, the global head of Airbus Corporate Jets, told the outlet. The company hopes to make five to ten long-term sales of the plane, Defforge said.

There were no sales of the jet in 2021, despite six commitments in 2020, Bloomberg reported.

Airbus did not immediately respond to Insider’s request for comment made outside of normal working hours.

The aviation industry, already reeling from the pandemic, took another major hit earlier this year when Russia invaded Ukraine, as sanctions curtailed Western business with Russia. Despite that, air travel has been steadily recovering as countries ease their COVID-19 restrictions on overseas arrivals.

Defforge told Bloomberg that Airbus is looking towards the Middle East for business opportunities, with challenges still abound for markets in the US and China. “We had to face headwinds during the last 12 to 18 months,” he said. “We anticipate in the Middle East a real opportunity for the coming years.”

There are more than 60 Airbus business jets operating in the Middle East, many around a decade old, so new sales could be made there to replace the older fleet, Lefforge told Bloomberg.

The US is a more difficult market but a rebound in travel offers hope, Defforge added. Defforge said another challenging market is China, due to its resurgence of COVID-19 cases and its subsequent lockdown measures.

Still, while loosened restrictions and holiday bookings are helping leisure travel rebound, business travel is proving more stubborn.

By the end of Q4 in 2022, US travel is expected to be at 55% of pre-pandemic levels, according to a Deloitte study.

Read the original article on Business Insider


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