Airbus SE
AIR: XPAR (FRA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| €632.00 | Qbxn | Twvdlfpryj |
To Meet Demand, Airbus Is Ramping Up Global Jet Production as Fast as Its Supply Chain Will Allow
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Business Strategy and Outlook
Airbus primarily generates revenue by manufacturing commercial aircraft. It benefits immensely from being in a duopoly with Boeing in the market for aircraft 130 seats and up; the companies act as a funnel through which practically all such commercial aircraft demand must flow. This allows both companies to actively manage their order backlogs to reduce cyclicality, despite the intense cyclicality of their customer base.