Kelly Ortberg was expected to attend his first Paris Air Show as Boeing CEO in a relatively optimistic atmosphere. Since taking over in August, he has overseen a rebound in the company’s fortunes, including ramped-up production of the 737 Max, improved deliveries, and recovery from safety-related crises. Boeing’s stock has risen over 13% this year, surpassing the S&P 500’s performance, signaling investor confidence in the company’s comeback.
Tragedy and Geopolitical Tensions Cast Shadow Over Paris Air Show Events
The upbeat tone shifted dramatically after the fatal crash of Air India Flight 171, a Boeing 787-8 Dreamliner, which claimed 241 lives just days before the air show. Ortberg and Boeing Commercial Airplanes CEO Stephanie Pope canceled their attendance to focus on the investigation and support their teams.
The crash is the first fatal accident involving a Dreamliner, and investigators are now analyzing the black boxes to determine the cause of the plane’s sudden, gliding descent into a fiery impact shortly after takeoff from Ahmedabad.
Boeing Faces Crisis as Tragedy and Global Tensions Cloud Paris Air Show OptimismThe tragic crash isn’t the only factor casting a shadow over the Paris Air Show. Escalating military conflict between Israel and Iran disrupted global air travel and heightened focus on defense spending. The industry gathering, typically filled with celebratory deal-making and aerial showcases, is now also contending with broader concerns about how geopolitical instability could affect the commercial aviation market and global travel demand.
Surging Demand and Limited Supply Drive Major Orders at Paris Air Show
Despite these challenges, Boeing and rivals like Airbus and Embraer are expected to announce hundreds of new aircraft orders during the show. Boeing estimates a global need for over 43,000 commercial planes in the next 20 years, with growth largely coming from emerging markets.
However, ongoing issues such as workforce shortages and rising production costs have delayed deliveries. Aircraft and leasing prices continue to rise due to high demand and limited supply, with even older planes commanding significantly higher lease rates.
The air show is seeing a return to interest in larger, twin-aisle jets as global travel rebounds. Major carriers from regions like the Middle East and Asia are placing sizable orders to expand international routes. Industry analysts expect between 700 and 800 commercial aircraft deals, including firm orders and other commitments.
While Air India was previously expected to participate, the recent tragedy has likely paused its acquisition plans. Nonetheless, the demand for wide-body aircraft remains robust, with long-term trends favoring international fleet expansion.
