Air Capital Insider

Analyst warns dollar gain could affect Airbus, Boeing backlogs

A Spirit AeroSystems employee works on a Boeing 737 fuselage.
A Spirit AeroSystems employee works on a Boeing 737 fuselage. File photo

A financial analyst who covers Airbus and Boeing warned investors Friday that a rising U.S. dollar could affect their commercial airplane backlogs.

Peter Arment of Sterne Agee CRT said in a research note Friday morning that the value of the dollar has appreciated 23 percent in the past two years, “impacting a broad range of local currencies falling from” 5 percent to 90 percent.

Arment said about 9 percent of Boeing’s 5,720-aircraft backlog comprises customers in countries whose currency against the dollar has declined more than 30 percent in two years. Airbus also has 9 percent of its 6,746-aircraft backlog from customers with currencies that have fallen more than 30 percent against the dollar, in the same period.

“Any further material gain in USD tied to interest rate hikes could further impact FX (foreign exchange) translation for aircraft sales and deliveries,” Arment wrote.

Airbus employs several hundred engineers in Wichita and is also a customer of Wichita-based Spirit AeroSystems — the city’s largest private employer — which manufactures major parts of some Airbus and all Boeing airliners.

Jerry Siebenmark: 316-268-6576, @jsiebenmark