Breakingviews - Aerospace's epic backlog upends business-as-usual

Aerospace’s epic backlog is reshaping the usual tug-of-war between airframers and engine makers, even as the Farnborough International Airshow highlights recovery hopes. Reuters Breakingviews notes that original equipment (OE) giants such as Airbus (about $190 billion) and Boeing (about $160 billion) benefit from new aircraft deliveries, while aftermarket specialists like Safran (about $160 billion) and GE Aerospace (about $350 billion) rely heavily on servicing engines on already-flying fleets. The piece cites an IATA and Oliver Wyman estimate that engines made up 52% of the $120 billion aerospace maintenance, repair and overhaul (MRO) spend last year. Typically, growth in new-jet deliveries should favor OE and reduce aftermarket demand, but delivery setbacks since the pandemic and Boeing’s 2018–2019 737 MAX crashes and 2024 door-plug incident have prolonged older fleets. Airbus CEO Guillaume Faury said the supply chain is in a “much better place” on Tuesday, with expectations of recovery discussed at Farnborough.