Analyst: Farnborough orders don't necessarily present a rosy picture

08/3/2010 | SeattlePI.com

Unexpectedly strong orders at the Farnborough International Airshow don't necessarily mean the aviation industry is heading into a growth period, said Richard Aboulafia, vice president of analysis at Teal Group. "If the current strong traffic recovery continues, airlines will be under-ordered, giving lessors an opportunity to meet surging demand," he wrote in a market update. "But this isn't the same thing as airlines feeling good about the future and ordering jets to meet demand. Perhaps those airlines are under-ordered because they're understandably wary of the macroeconomic environment."

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