Proactive Investors - This year’s Farnborough Airshow was a bit of a damp squib, suggests Canadian bank RBC, and especially for wide-body (WB) jets and their suppliers such as engine maker Rolls-Royce (LON:RR).
“Relative to expectations, the 2024 Farnborough Airshow (FAS) was a disappointment,” says the bank.
By day three (Wednesday, July 24), RBC notes that Airbus and Boeing (NYSE:BA) had announced a combined 165 orders (Airbus 69 and Boeing 96) but expectations heading into the airshow were for substantially more WB order activity.
RBC points out, however, that as neither Airbus nor Boeing can meet deliveries on the deals they already have, new order intake is not important now for investor sentiment on the sector
"We continue to view the demand environment as strong, but execution and supply chain issues continue to drive guidance reductions and increased caution about the pace of the aerospace original equipment ramp.
“Aerospace supplier confidence about the pace of supply chain improvement is as low as it was in 2022,” RBC added.
Shares in Rolls today fell 3% to 429.1p.