Reference Message Network reported on April 23 that, according to AFP's report on April 20, due to inflation and the COVID-19 pandemic, the prices of Boeing and Airbus aircraft have soared. Now, the trade war launched by the United States is likely to cause further turbulence.

An industry expert told reporters that compared with 2018, the prices of Boeing and Airbus aircraft have risen by about 30%.

These two aerospace giants are under pressure from rising costs in many areas: raw materials (especially titanium), labor, components, energy, and industrial processes (mainly steelmaking).

Boeing signed a social agreement at the end of 2024, stipulating a 38% increase in wages for over 33,000 unionized employees within four years.

Aerospace expert Richard Abelfia pointed out that "the casting and forging of titanium have experienced a period of high inflation, especially since Russian supply to the US and European capacity has disappeared," which is a consequence of the Ukraine war.

He claimed that since 2021, the price increase of materials and equipment has reached up to 40%.

He added, "The raw materials themselves are not really a problem, but President Donald Trump of the United States insisted on creating problems." He referred to the 25% tariffs imposed by the US President on steel and aluminum, which are important aerospace components.

After that, the additional tariff measures have been applied to all imported goods from the US, and the rates may increase.

John Pecinos, editor-in-chief of "Aviation Value News" magazine, said, "Inflation in the aviation industry is accelerating, and these disastrous tariffs will only make the situation worse."

He pointed out that new-generation aircraft, such as Boeing's 787 "Dreamliner" and 737 MAX, as well as Airbus' 321neo, are particularly popular because they are more fuel-efficient. Their prices have already "increased significantly."

However, it is meaningless to look for the old traditional price lists: Airbus has not released any price lists since 2018, and Boeing has not done so since 2023.

"The catalog price is fictitious," Abelfia joked, "you just need to dress up for the meeting, and you can get a 50% discount."

Airbus explained, "We abandoned the concept of 'catalog price' a long time ago. They are meaningless because they are completely disconnected from the actual final price. The final price is related to specific features, versions, configurations, etc., of each contract."

However, an industry expert who requested anonymity pointed out that manufacturers have an internal benchmark price, and then provide "purchase discounts" based on this, such as sometimes offering significant price reductions, or more commonly providing additional options or services (after-sales, training, etc.).

The contract also includes a clause specifying annual price adjustments based on the actual cost inflation rate until the aircraft is delivered several years later.

Since customers mainly pay in US dollars, Airbus also depends on the euro-to-dollar exchange rate.

Boeing told AFP reporters that the company evaluates aircraft prices based on production costs and other market factors, but did not disclose details, as this is a sensitive competitive factor.

Both aerospace giants have orders scheduled until the end of the 2020s, but they have not used this to raise prices.

The above industry expert said that the market "remains highly competitive," and both companies are "competing for every deal."

In order to reduce dependence, an increasing number of airlines are purchasing from both manufacturers simultaneously.

Manfred Hardt of Roland Berger International Management Consultants recalled, "Before the pandemic, Boeing and Airbus were constantly engaged in price wars. In fact, the prices at that time were quite low, even considered too low."

He pointed out that the increase in aircraft prices has led to "a general rise in airfare, resulting in good profitability for airlines."

To understand aircraft prices now, one must rely on the transparency of certain airlines. For example, ANA Holdings ordered 77 aircraft from Boeing, Airbus, and Embraer in late February. According to AFP calculations based on ANA's provided catalog prices: the price of a 787-9 "Dreamliner" is approximately $386 million, and the price of a 737 MAX8 is approximately $159 million. The prices of these two models in 2023 were $292 million and $121.6 million respectively. The price of an Airbus 321neo is approximately $148 million, while in 2018 it was $129.5 million. (Translated by Lin Xiaoxuan)

Original article: https://www.toutiao.com/article/7496454082916287011/

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