Boeing Gulf Backlog Remains Intact Amid Iran War Pressures

Boeing's exposure to the Middle East is substantial and represents one of its most valuable markets from a contractual value standpoint. The company has not seen any order cancellations or restructurings despite ongoing pressures spurred by the Iran war, according to Boeing Vice President for the Middle East, Gulf and North Africa Faha Al Mheiri.

The American planemaker's comments reaffirm the commitment of airlines in the region, including Emirates, Qatar Airways, and Etihad Airways, to their orders. These airlines account for around 1,000 orders within Boeing's commercial backlog, with many of those being high-value widebodies such as the 777-9 and 787.

Boeing's strong Middle East backlog puts it ahead of Airbus in the region, with industry estimates suggesting the company holds around 57% of commitments. The backlog is particularly important because it is heavily weighted towards widebodies, which are vital to supporting production for some of the planemaker's largest investments.

While short-term demand has been a concern, with IATA reporting that carriers in the region have seen demand fall 14% year-on-year in June, Boeing says that orderbooks remain safe. Middle Eastern carriers are making short-term changes to manage outgoings, rather than future-altering decisions like cancelling or deferring large commercial aircraft orders.