Record year for jet orders offset by shifting values of dollar

By Emma Vandore

Published: January 16, 2008

TOULOUSE, France — Airbus Chief Executive Thomas Enders was expected to announce today that 2007 was a record year for passenger jet orders and deliveries, allowing the European planemaker to steal the lead back from U.S. rival Boeing Co.

But the healthy order book doesn't make up for another feature of 2007 dogging Airbus and its parent company, European Aeronautic Defence & Space Co. NV: the strong euro.

The dollar's 11 percent fall against the euro last year cut into Airbus' revenue.

The European planemaker sells its jets in dollars, though many of its costs remain in euros. It claims to lose more than 1 billion euros ($1.48 billion) for every 10 cent rise in the euro.

"Enders will be seeking to strike a balance between being pleased at having the most orders and making it clear that just because Airbus booked a lot of orders, it doesn't mean the company is in perfect shape,” HSBC analyst Edward Stacey said.

In terms of orders, 2007 was a bumper year for both Airbus and Boeing, which announced its results two weeks ago.

The Chicago-based company blew past an order record it set two years ago, selling 1,413 commercial jets in 2007 while delivering 441 planes, its best showing in six years.

Airbus had delivered 410 planes and logged 1,204 orders as of the end of November, the latest update available.

Comments