Key insights
- Airbus CEO reports no jet order cancellations despite high fuel costs and industry turmoil. This indicates resilient long-term demand for new aircraft, suggesting airlines are prioritizing fleet modernization over immediate cost-cutting measures. While fuel prices are a concern, the commitment to existing orders implies a positive outlook for the aerospace sector and potentially stable airline operations, indirectly supporting related economic activity.
BERLIN, June 9 (Reuters) - Airbus CEO Guillaume Faury said he is not seeing any demand for cancellations of jet orders despite recent turmoil that has left the airline industry battered, speaking at an industry event on Tuesday.
Faury, head of Europe's largest aerospace group, said airlines had "been through hell" in recent years but were still holding onto their order books, underscoring resilient long-term demand for new aircraft.
Global airlines are grappling with higher fuel costs driven by the U.S. and Israel's war with Iran, which has squeezed jet fuel supplies and disrupted key air corridors, forcing carriers into costly detours, but Faury said this had yet to translate into any meaningful pullback in orders.
(Reporting by Maria Rugamer and Joanna Plucinska, editing by Thomas Seythal)