Airbus stock price has done better than Boeing in the past few years as demand for its planes has surged. Its stock has soared by 200% in the last five years, while Boeing has risen by just 10%. This article explores why Airbus will keep doing better than Boeing this year.
Trump trade war to hurt Airbus
Donald Trump has launched the biggest trade war in decades by targeting its top trading partners like those in Europe, Asia, and South America.
He has done that by implementing large tariffs on imports, especially steel and aluminum. Most importantly, he has said that April 2 will be the US Liberation Day, when he will impose reciprocal tariffs.
This trade war will have Boeing as a bigger casualty than Airbus. That’s because Airbus is a European company that will become a better choice for international companies as the US reputation worsens.
As such, it is easier to see how a country like China orders its airlines to switch to Airbus planes. The country may also announce huge tariffs on Boing planes that companies simply switch to Airbus voluntarily.
Besides, Airbus planes are generally better and safer than Boeing, a company that has moved from one crisis to the other.
Further, unlike Boeing, Airbus is a more international company, with a large factory in the United States. As such, while it will be hit by some import tariffs, it means that it will continue serving American customers without the import tariffs.
Airbus is growing its market share
The Airbus stock price will keep beating Boeing for other reasons. A low-hanging fruit is the fact that European countries are now getting serious about their security. Germany recently voted for a €500 billion bill that will see it improve its equipment.
While Airbus is known for its civil aircraft, it is also a major player in the defense industry, where it makes engines for military planes. Its defense business brought in over €12 billion in 2024.
European governments have insisted that the upcoming defense spending should be concentrated to European companies like Airbus.
Further data showed that Airbus business was doing well. Its revenue rose to €69.2 billion in FY’24, up from €65.4 billion a year earlier. It delivered 766 planes, while its backlog continued growing. It now has an order book of over €629 billion.
Airbus, like other industrial companies, has gone through major supply chain challenges in the past few years. These challenges will likely continue for a while because of these tariffs.
However, these supply chain issues will also affect Boeing more because Airbus’ largest operations are in Europe.
Boeing vs Airbus: which is a better stock to buy?
Investors have a choice to make on whether to invest in Boeing or Airbus. Boeing proponents cite its substantial market share in the civil aviation and defense sectors.
Also, they note that its stock crash makes it a bargain with a longer runway for growth in the coming years. This growth will be supercharged if the company’s planes stay out of trouble in the foreseeable future.
Additionally, they point to the fact that Boeing has a new CEO who may shepherd it well in the longer term.
Boeing’s bullish case is valid to some point, but Donald Trump’s tariffs will worsen the situation. For example, its margins will be affected by the tariffs on steel and aluminium and other parts.
The other argument is that Airbus is a better company to invest in because of its quality planes and the fact that it will continue growing market share over time. Therefore, the stock will likely continue doing well and is a better buy than Boeing.
Read more: Boeing stock price forecast 2025: BA is ready to fly
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