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Published on Monday, March 17, 2014

Airline orders at 'unprecedented levels'



Airline orders are at 'unprecedented levels' with low cost carriers expanding their fleet more than others.


In Europe, EasyJet, Ryanair and Norwegian Air Shuttle have placed orders in the past two years totalling hundreds of aircraft, extending to 2021 for fulfilment, reports the Financial Times.


Airlines have managed their seat capacity carefully to counter any downward pressure on ticket prices, KPMG said in a report, but the number of new aircraft due to come into service means there will be greater competition between airlines.


"Airlines around the globe are replacing their fleet at unprecedented levels," said James Stamp, global head of aviation at KPMG.


"Much of the order activity by legacy airlines is driven by the desire to cut operating costs. With fuel costs continuing to be at record levels and a new aircraft generation on the market which is up to 20 per cent more fuel efficient, this trend should not come as a surprise."


Airbus and Boeing have record levels of aircraft on order - at the end of last year Airbus had unfulfilled orders for 5,559 aircraft and Boeing had 5,080.


Low-cost carriers have continued to outperform other airlines in terms of share price, the research also found.

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