Boeing falls further behind Airbus as troubles deepen, Market valuation hits record gap

Boeing’s woes deepen as it falls further behind Airbus in market valuation, marking a significant setback for the US aerospace giant. With a market value of $112 billion, Boeing trails Airbus by a staggering $24 billion, reflecting the lopsided journey the company has endured in recent years.

Once the undisputed leader since Airbus went public in 2000, Boeing regained its top position in mid-2022 following disappointing performance forecasts. The market values of the two rivals remained closely matched until a spate of negative publicity eroded investor confidence in Boeing.

United Airlines CEO Scott Kirby’s recent remarks indicating a preference for Airbus’s A321 over Boeing’s offerings signal a potential shift in the aviation equipment preference. This sentiment is echoed by Delta Air Lines, which has already favored Airbus models over Boeing’s.

Analysts, including Kenneth Herbert from RBC Capital Markets, suggest that Airbus could capitalize further on Boeing’s troubles, especially if they apply additional pressure on Boeing’s customers. The widening gap between Boeing and Airbus underscores the challenges facing the US aviation giant.

With Airbus gaining momentum and Boeing facing ongoing turbulence, the company is looking to urgently address its issues to regain lost ground and rebuild investor trust. Boeing’s lagging aircraft deliveries, totaling 27 compared to Airbus’s 49 in February, further highlight the company’s struggle to keep pace with its European competitor.

As the aviation industry evolves, Boeing faces a critical juncture, requiring positive action to navigate through its current challenges successfully. The current controversy revolving around whistleblower John Barnett’s death has further dented the hopes of a positive Boeing come back.