The aviation industry is navigating its post-COVID ascent, and two giants, Airbus (AIR.PA) and Boeing (BA), remain central to the story. After years of volatility caused by grounded fleets, disrupted supply chains, and travel bans, 2025 signals a new phase. For traders, these aerospace stocks offer a blend of cyclical rebound and long-term innovation, but the differences between the two are as critical as ever.
Commercial Aviation Back in Focus
With air travel now surpassing pre-pandemic levels in key markets like Europe, the U.S., and parts of Asia, airlines are rushing to upgrade and expand their fleets. Airbus has seized this momentum with a substantial backlog of A320neo orders and a robust delivery pipeline. Boeing, on the other hand, is still managing reputational fallout from the 737 MAX crisis and recent quality control concerns related to the 787 Dreamliner.
Airbus is now the global leader in new aircraft deliveries, with over 700 aircraft delivered in 2024 alone. Boeing’s 2024 figures came in at approximately 528, missing its original target. For traders, this discrepancy underscores market share divergence in the short term.
Supply Chains & Production Bottlenecks
Both companies are affected by supply chain stress, particularly in sourcing engines and avionics. Airbus has warned of potential delays stretching into 2026, while Boeing has been forced to slow production temporarily due to manufacturing quality reviews. These factors create volatility, and short-term stock moves often reflect supply news as much as financial results.
Defence Contracts Offer a Buffer
While commercial aviation is rebounding, both firms benefit from defence revenues. Boeing derives a significant portion of its income from U.S. military contracts, including the KC-46 tanker and various classified projects. Airbus, meanwhile, works with European governments and NATO, particularly through its Eurofighter and A400M programs.
This diversification helps cushion earnings during periods of commercial aviation weakness. Traders often track defence news—such as NATO spending or U.S. budget shifts—as potential catalysts for aerospace stocks.
Valuation and Technical Levels
As of August 2025, Airbus trades with a forward P/E of around 19, while Boeing is at approximately 24. The valuation gap reflects market perceptions of execution risk. From a technical analysis perspective, Airbus has broken out of a consolidation range and is testing resistance near €145. Boeing remains range-bound between $190–$210.
These levels offer potential entries or exits depending on the trading strategy. Volume spikes on earnings days or new contract announcements can be meaningful signals.
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Trends Traders Are Watching Next
- Aircraft delivery pace vs guidance
- New commercial and military orders
- Macroeconomic effects on travel demand
- Raw material or component shortages
- Geopolitical shifts affecting defence contracts
For active traders, tracking both fundamentals and technical triggers is essential in this sector. Volatility tends to cluster around quarterly earnings, airshows, and regulatory announcements.
Conclusion
The rivalry between Airbus and Boeing continues to shape the aerospace sector’s trajectory in 2025. While Airbus appears to have the upper hand in commercial momentum, Boeing’s deep ties to defence and long-term innovation remain compelling. For traders, these stocks represent more than a sector rebound—they offer insight into global supply chains, government spending, and technology evolution.
