Airbus raises demand forecast, predicts worst over in delivery delays

Airbus Friday raised its forecast for aircraft demand over the next 20 years as it begins to recover from two years of late deliveries of its A320neo passenger jet. Aircraft demand has been driven mainly by strong economic growth in emerging markets and the need to replace older planes in mature Western markets. Airbus also confirmed that it was studying further development of the largest member of the A320 family. The European planemaker said it was raising its 20-year forecast for total aircraft deliveries by more than 7% to 37,400 jets, worth $5.8t at list prices. That compares with 34,900 aircraft worth $5.3t a year ago, partly as the result of a higher starting point as the industry absorbs another year of brisk growth in air travel. Dominating the outlook is the market for ‘Small’ jets up to 230 seats, where Airbus has expanded its portfolio by closing a deal to buy Bombardier’s 110-130-seat CSeries jet - mirrored on Thursday by a tentative deal by rival Boeing to acquire the commercial unit of Brazil’s Embraer.<br/>