Dealmaking continued at the 55th Paris Air Show as the showcase of global aerospace technology and economics event headed into day three. Airbus already landed multiple contracts. Brazilian manufacturer Embraer secured a $3.6 billion deal on Wednesday. Airbus stock reclaimed a buy point, while Embraer jumped past a buy zone.
The Paris Air Show runs from June 16 to June 19. Boeing and GE Aerospace opted not to attend this year following the tragic Air India crash last week that killed more than 200 people.
Airbus Orders
Airbus on Wednesday secured an order from EgyptAir for six of the manufacturer's A350-900 wide-body twinjet planes, SimpleFlying reported. The order is part of a new expansion strategy at EgyptAir. Wednesday's deal comes after Airbus on Tuesday landed an order for up to 150 A321neo aircraft from VietJet. VietJet already has 30 of the narrowbody planes in its fleet.
Those deals followed a very busy air show opening day for Airbus. The European plane maker won an order from Saudi Arabian lessor AviLease for 10 A350F freighters and 30 A320neo aircraft, which will expand to 22 of the A350Fs and 55 A320s, according to SimpleFlying.
Japan-based carrier All Nippon Airways confirmed a previously disclosed order for 24 A321neo planes and three A321XLRs.
LOT Polish Airlines made its first agreement with Airbus for up to 84 of its A220 line of planes to renew its regional fleet. That deal includes a firm order for 40 planes with options for an additional 44 aircraft. Embraer, LOT's prior plane provider, was also in the running for the order.
Riyadh Air also placed an order for up to 50 Airbus A350-1000s, which includes a firm order for 25 jets and options for an additional 25.
Elsewhere at the show, Saudi firm Cluster2 Airports signed a memorandum of understanding with Airbus to deploy advanced digital solutions to improve operational efficiency, security and integration across the airports under its network, Arab News reported.
Airbus on Wednesday also announced plans to increase its dividend and maintained its 2025 guidance. The manufacturer raised its payout ratio (net income distributed to shareholders) to 30% to 50% from its prior range of 30% to 40%.
Embraer, eVTOLs
Although Embraer lost out with LOT Polish Airlines, All Nippon Airways finalized a firm order for 15 planes from Embraer's E-Jet E2 family as part of a fleet renewal plan, according to SimpleFlying.
Embraer on Wednesday announced it secured a firm order from SkyWest for 60 aircraft, with purchase rights for an additional 50 aircraft. Deliveries are set to begin in 2027. The list price for the firm order of 60 jets is $3.6 billion, which will be included in Embraer's Q2 backlog, the company said. SkyWest is the largest owner and operator of the E175 plane worldwide.
Southern Africa-based Airlink plans to lease 10 new Embraer planes from Fort Lauderdale-based Azorra, which Embraer will deliver starting this year through 2027. Embraer announced the deal Wednesday.
Eve Air Mobility, which was born out of Embraer's innovation division, on Wednesday announced it signed a letter of intent with Future Flight Global for up to 54 electric Vertical Take-Off and Landing (eVTOL) aircraft, which will target the Brazil and U.S. markets.
Elsewhere, Boeing subsidiary Wisk Aero on Tuesday said it is preparing to start flight testing its autonomous eVTOL air taxis, FlightGlobal reported. The California-based operation could start tests in "weeks or months" with plans to carry passengers later this decade.
Airbus Stock, Embraer In Buy Zone
Airbus, which trades in American Depository Receipts under the symbol EADSY, climbed about 1% Wednesday. The gain put Airbus stock back above a 46.49 buy point for a consolidation.
Shares first broke out on March 6 but have drifted lower to ease out of the buy zone. The buy zone, which extends 5% beyond the buy point, stretches to 48.81.
Airbus stock is up almost 16% this year and is trading near record highs.
Embraer stock surged more than 4% Wednesday to pop out the top of a buy zone. Shares were trading above a 50.45 cup-with-handle buy point after breaking out on Monday.
The current buy zone extends to 52.97. ERJ stock has rallied about 45% so far this year.
Airbus has a 21-Day Average True Range of 1.06%. Embraer's 21-day ATR is 3.26%.
The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
With the S&P 500 and Nasdaq now in a power trend, investors can buy stocks with ATRs up to 8%, though they should be wary of being too concentrated in high-octane names.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
