Riyadh Air to order 25 Airbus A350 jets at air show, sources say

Riyadh Air, a new Saudi airline, is expected to finalize a firm order for 25 Airbus A350-1000 jets at the upcoming Paris Airshow. This order, part of a broader plan to acquire up to 50 aircraft, coincides with anticipated deals by fellow Public Investment Fund subsidiary AviLease for 40 Airbus planes, signaling a significant expansion of Saudi Arabia's aviation sector. Both companies have also previously placed orders for Boeing jets.

Analysis

Industry sources indicate that Saudi startup Riyadh Air is set to place a firm order for 25 Airbus (AIR.PA) A350-1000 jets, with the finalization expected at next week's Paris Airshow; the airline was previously reported to be considering up to 50 such aircraft. This development, carrying a strongly positive sentiment score of 0.7 and a market impact score of 0.6, is further amplified by reports that fellow Public Investment Fund subsidiary AviLease is also nearing a deal for 40 Airbus planes. These potential orders signify a substantial expansion of Saudi Arabia's aviation capabilities and represent a significant win for Airbus, which has a specific positive sentiment of 0.7 related to this news. Both Saudi companies have also previously placed orders with Boeing, indicating a diversified procurement strategy for their fleet development in the transportation and travel sectors. Airbus and Riyadh Air have declined to provide official comments on these pending orders.

Key Decisions for Investors

• Investors should view this prospective order as a positive indicator for Airbus (AIR.PA), reflecting continued demand for its wide-body aircraft and success in securing contracts with new, well-funded airlines.
• Monitor the Paris Airshow for official confirmation and further details of this deal, as well as the AviLease order, as these could provide additional catalysts for Airbus stock and reflect broader aerospace sector strength.
• Recognize Saudi Arabia's aggressive expansion in the aviation sector via its Public Investment Fund, which presents significant long-term opportunities for aircraft manufacturers, while also noting the competitive landscape evidenced by prior Boeing orders from these Saudi entities.