Helicopter deliveries ‘may rise in 2025’: Bloomberg Intelligence

Airbus Helicopters, Leonardo and other manufacturers are benefiting from rising orders, says Bloomberg Intelligence.

Helicopter deliveries are likely to rise in 2025 after falling  this year, predicts a new report from Bloomberg Intelligence (BI). More orders at Airbus and Leonardo are expected to contribute to rising deliveries.

Increased oil prices could boost demand for higher-margin offshore twin-engine models, with Airbus said to be seeing gains already, according to  the market intelligence company.  Wars in the Ukraine and Middle East could also boost defence demand as spending grows: particularly for European manufacturers,

This year, twin-engine helicopter demand appears set for an annualised fall through late August of 30%, surpassing total helicopter-deliveries (down 22.5%). Medevac, dedicated attack and police helicopters are accounting for the bulk of this shortfall, according to the company.

George Ferguson, senior industry analyst – Aerospace/Defence, BI said: “Offshore oil and gas appear set for a sizable gain, we believe, with Airbus taking share. Coast guard needs, along with multi-role military and civil are faring well.”

Both backlogs and orders at Airbus and Leonardo have risen, evidencing growing demand and suggesting a potential increase in build rates.  Order data from Airbus references 233 helicopters in the first half (H1) of this year compared with 131 in the same period last year. Data from Leonardo Helicopters confirms €3.6bn in value in the first half of 2024 compared with €2.8bn in H1 last year. European helicopter makers could see better trends as military helicopter spending rises after years of underinvestment, according to BI. But supply-chain problems are likely to be slowing builds.

“Revenue and margin could rise for Airbus and Leonardo as demand grows for offshore-support helicopters by the oil and gas industry and military models amid the wars in Ukraine and the Middle East,” said Ferguson. “The pandemic brought no sales or profit gains to helicopter manufacturers like it did for business jets, given most of the demand then was for fixed-wing aircraft.”

Early in the past 10 years, offshore oil and gas support helicopters were “a major driver of incremental revenue and better margin” though demand slowed significantly as oil prices skidded in 2014, he added.

But manufacturers Bell and Sikorsky are in a different situation, according to BI. Bell “has a lot of corporate business and its 525 offshore-support model had flight-test challenges”, said Ferguson. “Sikorsky is almost solely a military helicopter provider.”