Paris Air Show opens amid crashes, conflicts and cost pressures

The Paris Air Show, historically a showcase for mega-deals and aerospace pageantry, opens on Monday under a cloud of crisis and uncertainty. As more than 2,400 exhibitors from 48 countries gather at Le Bourget for the industry’s flagship event, the usual buzz around commercial aircraft orders and the Boeing (NYSE:BA)-Airbus (OTCPK:EADSF) (OTCPK:EADSY) rivalry has taken a backseat to more sobering global developments.

Gathering overshadowed

The devastating crash on Thursday of an Air India 787 Dreamliner in Ahmedabad, resulting in the deaths of at least 265 people, has cast a long shadow over the event.

Boeing (NYSE:BA) Chief Executive Kelly Ortberg has pulled out of the show to oversee the investigation, dealing a fresh blow to the company as it struggles to regain confidence after years of safety and production concerns. The incident also disrupted what had been a modest recovery under new leadership.

Meanwhile, escalating geopolitical tensions are drawing attention away from business-as-usual. The ongoing war in Ukraine, now entering its fourth year, and renewed conflict in the Middle East following Israeli strikes on Iranian nuclear targets have stirred fears of broader instability. Commercial air routes have already been affected and the mood at the show is expected to be tense.

Economic drag and supply snarls

Even before these recent events, the industry’s outlook was cooling. A slowdown in the global economy, intensified by a wave of U.S.-led tariffs, has dampened optimism. U.S. President Donald Trump’s aggressive trade agenda, launched in April, imposed a 10% blanket tariff on U.S. imports and threatens even higher levies on civil aircraft and parts. Both Boeing (BA) and Airbus (OTCPK:EADSF) (OTCPK:EADSY) have voiced frustration, warning that tariffs are worsening supply chain costs in a sector already burdened by post-pandemic disruptions.

We’re “not in a position to pass those (costs) along to our customers,” he told Aviation Week. “I’m hopeful that, as each of these country-by-country negotiations resolve, those tariffs will go away in the long run.”

He urged a return to zero-tariff agreements that had defined the industry since 1979.

Airbus (OTCPK:EADSF) (OTCPK:EADSY), too, is grappling with production delays. The company has struggled to source enough engines for its A320 jets and has seen delivery timelines slip for around 40 aircraft. In an almost comical twist, widebody jet production is reportedly being held up by a shortage of lavatories.

Military and space on the rise

With commercial aviation facing headwinds, defense is playing a larger role at this year’s show. The growing threat environment in Europe and the Middle East has led to rising defense budgets and renewed interest in combat aircraft. Military displays now take up a significant share of the exhibition, including high-profile appearances from the Lockheed Martin (NYSE:LMT) F-35 and Dassault’s Rafale.

The strategic environment has changed dramatically, Frederic Parisot, head of the French aerospace association Gifas, which organizes the show, said to Agence France Presse. Defense isn’t a sideshow any longer after being “in the background in previous years.”

Seventy-five weapons-related firms are participating, and although fewer Israeli companies are attending this year because of political controversy, their presence remains a point of contention after a French court dismissed a legal effort to ban them.

Glimpse of the future?

Despite the heavy atmosphere, innovation still peeks through the clouds. U.S. startup JetZero is attracting attention with its futuristic blended-wing design, a triangular aircraft concept that could disrupt traditional fuselage thinking. The company aims for a full-scale test flight by 2027, though hurdles in certification and production remain steep.

There’s also growing interest in space ventures, with European firms like Airbus (OTCPK:EADSF) (OTCPK:EADSY) and Thales (OTCPK:THLEF) (OTCPK:THLLY) exploring partnerships to challenge SpaceX’s (SPACE) orbital dominance.