A new report from trade association ADS Group highlights that orders for single-aisle aircraft dominate market recovery and account for almost 80 per cent of orders in 2023.
Global deliveries are just below 2019 trends with 860 deliveries year-to-date, a 12 per cent increase on the same period in 2022. Deliveries for single-aisle and wide-body aircraft increased by 10 per cent and 24 per cent respectively at the end of Q3.
The backlog of orders sits at 14,690 aircraft, which is up 10 per cent on Q3 2022. At current rates the aircraft on backlog order are estimated to be worth £229bn to the UK’s aerospace sector. Year-to-date, 144 aircraft orders have been cancelled, which ADS reported as below trends seen in the last few years.
Ahead of the Autumn Statement on 22 November, ADS has written to the chancellor and is urging the government to develop and implement a new industrial strategy.
In a statement, Kevin Craven, chief executive, ADS Group, said: “For the UK’s thriving aerospace sector which supports 108,000 direct jobs while generating £27bn in turnover, £10.9bn in value add, and £18.6bn in exports to continue to excel in a highly competitive global market ongoing support is essential.
“In the Autumn Statement, we hope to see measures that incentivise investment in the UK, as well as extended support for aerospace sector R&D beyond 2025, which is critical to securing continued industry investment to accelerate the development of the next generation cleaner and more efficient aircraft technology in the UK.”
ADS’ recommendations to the chancellor include calls to introduce a reformed R&D tax credit scheme over a longer timeframe, ensuring it addresses capital expenditure and maintains support for SMEs; encourage investment in the UK’s defence industrial base through long-term clarity on future defence spending; provide long-term uplifted funding for aerospace R&D through the Aerospace Technology Institute (ATI); and involve industry in developing the future revenue certainty scheme for Sustainable Aviation Fuel (SAF).