Soaring High Despite Headwinds

The biennial Dubai Airshow attracted a record number of visitors with deals worth billions signed. But with political and economic uncertainty across global markets, what comes next for the aviation sector?

- Aarti Nagraj

Thousands of people — more than 84,000 to be precise — thronged the venue of the Dubai Airshow late last month, making it the “busiest” ever edition of the biennial event, according to organisers. With more than 1,288 exhibitors in attendance – including 100 new ones — and 161 aircraft on the event’s static display, the week-long show also saw strong business, with the order book on site reaching $54.5bn.

Airbus topped the list, securing a total of 220 orders and commitments, including an order from low-cost carrier Air Arabia for 120 single-aisle A320 aircraft and Emirates’ purchase agreement for 50 widebody A350 XWBs. Boeing secured 97 orders and commitments, with major deals including an $8.8bn order from Emirates for 30 787 jets.

However, the overall value of orders announced on site were much lower when compared to the previous Airshow in 2017, when the numbers reached almost $113.8bn in 2017.

That comes on the back of strong headwinds. Earlier this year, the International Air Transport Association (IATA) downgraded its 2019 profit forecast for the global air transport industry to $28bn, down from $35.5bn in December 2018. Costs this year are projected to rise by 7.4 per cent compared to a 6.5 per cent rise in revenues.