Investing.com -- Day 2 of the Paris Air Show (PAS) brought limited new commercial orders but a surge in aftermarket optimism and broader defense commentary from key industry players.
Airbus Group (EPA:AIR) again led the day’s activity, signing a Memorandum of Understanding (MOU) with Vietjet for 100 A321neo aircraft, plus options for 50 more. Including this, Airbus has amassed 232 orders with 156 options through the show’s first two days, while Boeing (NYSE:BA) has yet to record a single new order.
Boeing said at the event that its focus was on “supporting customers” rather than on orders.
Supply chain commentary remained a focal point across meetings. Safran (EPA:SAF) highlighted progress, stating the number of critical suppliers for the LEAP engine program has declined to 10 from 15 a year ago, and a more substantial ramp in deliveries is expected from September.
Howmet Aerospace (NYSE:HWM_p) voiced a more cautious tone, pointing to ongoing challenges with LEAP deliveries and emphasizing the need for roughly 400 engine deliveries in Q2 to stay on track for 2025 guidance.
“While supply chain commentary is improving, investors remain focused on the potential for risk associated with tariffs, broader uncertainty, that may not yet be evident,” RBC Capital Markets analysts said in a note.
Meanwhile, the aftermarket commentary remains “very bullish,” the analysts added. Notably, MTU Aero Engines (ETR:MTXGn) raised its full-year sales guidance by 4%, citing stronger-than-expected demand for spares and maintenance.
Commercial engine maintenance is now expected to grow mid-teens year-over-year, while spares are set for low- to mid-teens growth.
Analysts at Jefferies noted that VSE Corporation (NASDAQ:VSEC), too, remains confident in double-digit aftermarket growth for 2025, highlighting the sustained recovery in MRO activity.
At the same time, StandardAero Inc (NYSE:SARO) and Chromalloy anticipate sustained engine overhaul demand with CFM56 shop visits peaking around 2028, while Loar Holdings LLC (NYSE:LOAR) expects 3–5% secular growth supported by pricing, innovation, and modest market share gains.
Regarding defense updates, Boeing emphasized a renewed strategic focus. RBC highlighted remarks from Boeing Defense CEO Steve Parker, who said the company is pursuing “a new Boeing” approach centered on risk discipline and talent acquisition.
The F-47 aircraft program was cited as a key priority, with Parker expressing strong confidence in its execution and margin potential. Boeing is targeting high-single-digit margins in its Defense, Space&Security unit by 2028-2029.
On the propulsion side, Wizz Air (LON:WIZZ) selected Pratt&Whitney’s GTF engines for 177 A321neos, reaffirming the engine’s competitive position.
Meanwhile, discussions at Safran pointed to stable aftermarket pricing, with expectations of 3–4% annual increases and strong demand for both LEAP and legacy CFM56 support.
All eyes now turn to Airbus’ business update scheduled for Day 3, where management is expected to address its 2025 delivery outlook, supply chain dynamics, and mid-term strategic goals.
