Airbus (ETR: AIR) share price is beating Boeing badly in 2024 as the American giant goes through a major crisis. The stock is up by more than 12% in 2024 while Boeing has plunged by more than 22%. Similarly, Airbus shares have soared by 30% in the past 12 months while Boeing is down by over 5%.
Airbus vs Boeing stock prices
Airbus is doing wellAirbus is doing well as demand for aircraft jumped and as it avoids the public relations (PR) crisis that Boeing is going through.
Its order book has jumped sharply in the past few months. It has a bigger backlog than Boeing, which was unimaginable a few years ago.
The most recent results showed that the company delivered 735 commercial aircraft in 2023. Its revenue soared to over €65.4 billion while its adjusted EBIT moved to €5.8 billion.
Airbus’s backlog has also jumped sharply in the past few months. It ended the year with over €554 billion in backlog. Boeing, on the other hand, had a backlog of $520 billion (€475 billion) and 5,200 commercial aircraft.
Airbus expects that its business will continue doing well this year. It expects to deliver 800 commercial aircraft this year while its adjusted EBIT will be between €6.5 billion and €7.0 billion. This means that the company will deliver 65 more aircraft this year than in 2023.
Airbus’s defence and pace business is also doing well as geopolitical risks rise. The segment generated over €11.49 billion in 2023, a 2% increase from the previous year. However, its EBIT dropped by 40% to €229 million.
In theory, Airbus should be able to take some business from Boeing, a company that is going through a major crisis.
However, it is unclear whether Boeing will lose any orders because of how the industry works. For one, a company that places an aircraft order today will receive the plane in the next few years. Therefore, most airlines will not want to lose their slots with Boeing.
Further, airlines, especially regional ones, take time to plan their fleets. For example, Southwest Airlines and Ryanair uses Boeing 737 planes while EasyJet uses Airbus A320. In this case, Southwest, Ryanair and other companies will likely not move from Boeing.
In the future, however, many big airlines will likely prefer Airbus planes compared to Boeing. Delta recently placed an order of 20 Airbus A350 planes while United Airlines has placed a huge order from the company.
Secret footage was captured of Boeing engineers saying they would not fly on these planes.
The 15 people who were asked those questions were working on the flagship product, the 787 Dreamliner.
The people on the assembly line have little faith in the plane they built.
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In my last Airbus forecast, I predicted that the stock would continue soaring as its backlog rose. This outlook was correct as the stock has jumped in the past five straight months.
Most recently, the stock has jumped above the important resistance point at €135.48, its highest point in January 2020. It had struggled to move above that level several times in 2023.
Airbus stock has remained above all moving averages while the Average Directional Index (ADX) has soared to almost 30. This is a sign that the stock has more momentum. Therefore, the outlook for Airbus shares is bullish, with the next point to watch being at €170.
The risk to the thesis is that the stock has formed a rising wedge pattern, which could lead to more downside.
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