Boeing, Airbus Shares Slump on ‘Bubble’ for Used Wide-Body Jets
- Secondhand sales may hurt pricing on factory-fresh 777s
- Keeping order flow crucial for planemakers' production lines
An OAO Aeroflot operated Boeing 777-300ER passenger jet, named M. Barclay de Tolly, taxis at Sheremetyevo airport in Moscow, Russia, on Thursday, Sept. 4, 2014. Russian flag carrier Aeroflot said it will revive plans to build a low-cost arm after discount unit Dobrolet was grounded by European Union sanctions tied to the Ukraine crisis just two months after flights began.
Photographer: Andrey Rudakov/BloombergShares of Boeing Co. and Airbus Group SE tumbled after Delta Air Lines Inc. said a surge of wide-body passenger jets are coming off lease, creating investor concern that the planemakers face pressure on pricing and orders for new aircraft.
Delta Chief Executive Officer Richard Anderson, speaking Wednesday on an earnings call, said he sees a “huge bubble” for used wide-bodies while also signaling his interest in eventually adding secondhand long-haul jets.