Jet lag for Boeing but Airbus orders pour in

Airbus, the European plane-maker, yesterday outshone its US rival, Boeing, by announcing 600 orders for the next two years in an upbeat assessment of the aviation market.

Rainer Hertrich, co-chief executive of Eads, the European aerospace and defence group which owns 80% of Airbus, said the industry was clearly coming to the bottom of the cycle and there were signs of recovery all over the world. His comments contrasted with more cautious remarks last week from Phil Condit, Boeing's chairman and chief executive, who spoke of a recovery in 2005 at the earliest.

Mr Hertrich reaffirmed that Airbus would deliver 300 planes this year, beating Boeing - which expects to sell 280 planes - for the first time. Mr Condit said Boeing would deliver at most 290 planes and perhaps as few as 275 next year. Mr Hertrich's announcement of 600 firm orders in 2004-2005 indicates that Airbus expects to deliver at least 300 planes in each of the next two years, though sources said some deliveries could be deferred.

Next year Airbus is counting on 118 orders from leasing companies, 79 from Europe, 46 from north America, where airlines are being kept afloat by federal aid, and just 27 from Asia where travel was hammered by the Sars outbreak. Eads confirmed that fewer deliveries at Airbus, greater research and development spending on the new A380 superjumbo, and the weaker US dollar helped depress first-half earnings to €592m (£420m) from €775m in 2002.

Eads cheered investors by disclosing that its net cash remained strong at €918m while its net exposure to customer financing - almost entirely from Airbus - was a "conservative" €1.6bn. The half-year figures were depressed by a €88m charge for restructuring the ailing space business, though Mr Hertrich said Eads would probably book a further €200m charge in the final quarter.

The group, ramping up production of the Eurofighter and preparing for the launch of the A400M military transporter, said growing defence orders would boost sales and earnings this year and next.