Aerospace is the stuff of dreams. For voestalpine, it is a business area with enormous potential and promising future prospects. After the severe turbulence during the Covid-19 pandemic, the market is starting to take off again. In our Aerospace section, we are following the restart of this very special customer segment.
The Covid-19 pandemic brought global air travel to a virtual standstill, grounding up to 90% of aircraft in the first few months. This resulted in an almost unmanageable economic burden for the airlines that affected the entire supply chain. And this happened at a time when voestalpine was already affected by the Boeing 737 Max production cuts. The Group’s revenue in the aerospace segment dropped more than 50%, from EUR 420 million (BY 2019/20) to EUR 180 million (BY 2020/21).
Restart with rising order intake
voestalpine has always believed in the aerospace business because previous crises have shown that the industry always picks up again and grows in the long term. And that is the case now. The aerospace business has taken off and we are seeing a significant increase in incoming orders. Demand for single-aisle aircraft in particular is picking up, but the market for widebody aircraft remains weak. Major aviation enterprises are currently anticipating a return to annual growth rates of 4 to 5%. A lot will depend on how international travel regulations develop in the future in light of the Covid pandemic.
"Aerospace remains a strategic future market for us. We will consistently expand our technology leadership in high-performance materials and special components. In particular, we want to grow in the area of downstream processing."
Taking off together
The aerospace horizon has cleared, opening up a promising long-term outlook for the sector despite challenging conditions and ongoing volatility on the raw materials market. Even though the pre-crisis level has not yet been reached, the expected upturn gives us cause for optimism. It was the motivation and incredible spirit of the employees that carried us through this challenging phase. They have achieved incredible things in the last two years. They tirelessly supported each other and voestalpine by sticking together and being considerate.
To commemorate the upswing, over the next few months voestalpine will be providing insights into the very special (aero)dynamics of this business area and showcasing some of the people who are assisting the Group’s aerospace business on its journey. With aerospace as a strategically important pillar, voestalpine is definitely moving into the future in a stronger position. Ready to continue gaining altitude with full thrust during the climb.