Both May Fall Short Of Sales Goals For 2016 When Final Numbers Revealed Later This Month

Both Boeing and Airbus may face a challenging year in 2017 after both saw sales slip last year.

The Financial Times reports that when the two planemakers release their final reports for sales later this month, the numbers will likely indicate that they fell short of their sales goals for 2016.

Both companies had a goal of replacing every delivery with a new order. But both apparently fell short of that goal, according to aerospace analyst Bob Stallard of Vertical Research Partners. If that is the case, it would be the first time since 2009 that it has happened, he said.

Stallard said that he sees airline demand indicators easing, and that the industry could be "near or past the peak of this upcycle."

Both companies signed multi-billion-dollar orders from Iran in late 2016, but neither has received approval from their respective governments to complete the sales, so they will not be included in the 2016 final reports.

While deliveries are expected to increase in 2017, new orders may slow as carriers adjust to higher oil prices and slower passenger growth. IATA projects that traffic growth will slow to 5.1 percent, down from 5.9 percent in 2016.

(Images from file)

FMI: www.boeing.com, www.airbus.com