Airbus Enters Farnborough in a Tale of Two Dossiers: Record Orders and Margin Squeeze
Published on 07/17/2026 at 18:33 | Redaktion boerse-global.de
Airbus rolls into next week’s Farnborough International Airshow with a dealbook that reads like a paradox. On one side sit two massive orders from Chinese carriers and advanced talks with the leasing giant SMBC Aviation Capital — together worth tens of billions of dollars. On the other sits a first-quarter profit collapse of more than 50%, weighed down by the very supply-chain bottlenecks that threaten to cap the production engine needed to fulfil them.
Air China and its subsidiary Shenzhen Airlines have placed a firm order for 55 aircraft, including 15 A350-900 long-haul jets earmarked for Air China and 40 A320neo narrowbodies destined for Shenzhen. The combined price tag is $12.4 billion, though the carrier noted in a Shanghai stock exchange filing that actual transaction costs will fall below list prices — a standard discount for block purchases. Hainan Airlines separately signed up for another 40 A320neo units, valued at up to $5.36 billion. Deliveries are spread across the decade’s end: the A350s between 2030 and 2032, the A320neos between 2029 and 2032. The orders came just weeks after the same group of carriers — Air China, China Eastern, China Southern and Shenzhen Airlines — jointly ordered 292 A320-family jets from Airbus in early July, underscoring the relentless Chinese appetite for European-built single-aisle aircraft as post-pandemic fleet expansion accelerates.
Meanwhile, a quieter but potentially game-changing battle is unfolding between Airbus and Boeing. Leasing heavyweight SMBC Aviation Capital is in advanced discussions with both manufacturers for approximately 100 narrowbody jets, with a decision expected around the Farnborough show opening on 20 July. Airbus is pushing its A320neo against Boeing’s 737 Max. The Irish lessor has not commented publicly, and neither manufacturer has confirmed the talks. Separately, Airbus is also negotiating with Saudi low-cost carrier Flynas for additional A320neos and A330neo widebodies to support its fleet expansion.
Should investors sell immediately? Or is it worth buying Airbus?
The order rush provides a welcome narrative boost, but the financial picture is more sobering. In the first quarter, Airbus’s adjusted operating profit plunged 52% to €300 million, driven by delivery disruptions tied to engine shortages from Pratt & Whitney. The company delivered 351 aircraft in the first half of 2025, a 15% increase year-on-year and the best start to a year since 2019. A June catch-up in China-bound deliveries and a slight easing of engine constraints helped, though executives describe those as temporary relief rather than a structural fix. Internally, Airbus is targeting more than 900 deliveries in 2026, but official guidance remains at 870 aircraft this year.
Farnborough will test whether the industry can match demand with output. The global order backlog stands at over 17,000 planes, and engine groundings remain a drag even as Boeing works to ramp its 737 Max production after falling roughly a dozen jets behind Airbus in year-to-date deliveries. Airbus is putting on a full display, flying its A350-1000, A321XLR, A400M military transport and H160 helicopter daily from 20 to 24 July. On Tuesday 21 July, the company will hold its Business Update 2026 in London, with CEO Guillaume Faury and CFO Thomas Toepfer presenting the latest strategic outlook. That event is likely to draw more attention than the static display, as investors weigh whether production ambitions can keep pace with an order book that keeps growing.
The stock reflects the mixed signals. Airbus shares closed the week at €48.40, roughly 6.3% above their 50-day moving average — a sign of modest upward momentum — but still 12% shy of the 52-week high of €55.00 set in January. The RSI of 53.8 leaves room for a rally if an SMBC deal breaks in favour of Airbus, but also signals no urgency. For now, the market seems to be waiting for the show’s orders and the midweek business update to decide whether the balance tips towards the order boom or the margin squeeze.
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