US. The Aerospace Industries Association (AIA) reported in its annual state-of-the-industry address this week that commercial aircraft sales had fared better than expected in 2003. The Association predicts a return to growth in 2005-2006.
The US aerospace industry generated US$147 billion in sales in 2003, down -4.3% or US$6 billion from 2002. Sales of commercial jetliners fell US$7.1 billion, following a drop of US$6.6 billion in 2002. Aerospace profits fell to an estimated US$5 billion – the lowest level in eight years. Employment for the sector also fell for the fifth straight year.
According to the AIA, the industry continues to show a trade surplus, but there is a negative trend and to some extent high military sales have offset a decline in orders for commercial aircraft.
The reduced production of commercial jet airliners in 2003 – 280 planes in 2003 compared to 379 in 2002 – dragged transport revenues down by -26% to an estimated US$21 billion.
Outlining the industry’s issues for 2004, AIA president and ceo John Douglass said: “The surprising news is that the slump is not nearly as sharp as was predicted a year ago, and not as deep as we experienced a decade ago.” He predicted a recovery for US aviation, but not until 2005 to 2006.
