Airbus Global Market Forecast 2010 2029

Toulouse, December 13th

John Leahy
Chief Operating Officer g Customers

GMF highlights
GMF 2010 key numbers and 20-year change

World fleet forecast

2009

2029

% change

RPK (trillion) Passenger aircraft New passenger aircraft deliveries Dedicated freighters New freighter aircraft deliveries Total new aircraft deliveries

4.76 14,240 1,550 -

12.03 29,050 24,980 24 980 3,350 870 25,850 ,

153% 104% +116% -

Market value of $3.2 trillion

Source: Airbus GMF 2010

Air travel has proved to be resilient to external shocks

World annual traffic

5.0 4.5 4.0 3.5 3.0 2.5 2.0 20 1.5 1.0 0.5

Oil Crisis
RPK (trillion)

Oil Crisis

Gulf Crisis

Financial Asian WTC Crisis AttackSARS Crisis

+45%*

0.0 1970

1975

1980

1985

1990

1995

2000

2005

2010 E

Source: ICAO, Airbus

* since 2000

GDP and passenger traffic development

World real GDP and passenger traffic (year-over-year)

8% 6% 4% 2% 0%
Real & forecast GDP

November Passenger traffic up

7.8%

-2% 2% -4%

Traffic ASKs

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2007

2008

2009

2010

Passenger traffic recovering in-line with GDP in line

Source: IHS Global Insight (November 2010 data), OAG (ASKs data), Airbus

Still a two-speed World

Real GDP growth (%) History Forecast

8% 6% 4% 2% 0% -2% -4% 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Emerging economies economies*

Mature economies

This is mainly driven by the potential to travel in certain regions

Source: IHS Global Insight (November 2010), Airbus * 54 emerging economies

All regions are currently growing

Passenger traffic (monthly ASKs year-over-year)
16% 12% 8% 4% 0% -4% 8% -8% -12%
United States Western Europe Emerging Economies* g g

Traffic up

13.7% 13 7%

Traffic up

5.4% 4.9%

M M

M M

M M

M M

2007

2008

2009

2010

Emerging economies are leading the way

Source: OAG (ASKs), * 54 emerging economies, Airbus

Yields recovering in all regions

Relative yield evolution (base year 2000) 150 140 130 120 110 100 90 80 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q1 2010 Q2 2010 Q3 2010

%
North America Europe Asia Pacific Asia-Pacific

Recovery driven by premium traffic Global yields have increased +0 8% pa +0.8%

Source: ATA, AEA, AAPA and airlines data for 2010

5.8 billion people will increasingly want to travel by air

China India Middle East Asia* Africa CIS Latin America Eastern Europe Western Europe North America Japan Australasia
* Asia excludes India, China and Japan

Yearly RPK growth 2009 -2029

5.8 58
billion
p p people 2009

1.0
billion
people 2009

Impressive airline industry expansion in emerging countries

Passenger aircraft over 100 seats operated by airlines

Jan 2000 Fleet in service 453 47 112 12

Dec 2010 1386 565 322 280

3 12 3 23

China Mainland
Backlog Fleet in service

India
Backlog

Source: Ascend

Growing A380 network especially in Asia-Pacific

40 A380s flying 27 routes to 20 destinations

24,000 revenue flights and over 200,000 flight hours

Montreal

London Manchester Paris

Frankfurt Beijing Seoul Tokyo Los Angeles

Toronto

Zurich

New York Washington Jeddah

Singapore Airlines g p Emirates Qantas Air France Lufthansa
Additional airline-announced routes for 2011 shown dotted

Dubai Bangkok

Hong Kong

Singapore

Johannesburg J h b

Sydney Melbourne Auckland

Over O 9 million passengers h illi have enjoyed th A380 j d the experience in the first three years

Airlines returning to profitability

Airline industry EBIT margins (% of revenues)

6.3% 5.5% 4.0% 2.9% 1.2% 0.1% 0.0% -0.1% -1.8% -2.2% 5.1% 3.4% 3 4% 3.8%

North America Europe Asia-Pacific

0.9%

-4.7%

2007

2008

2009

2010

2011

EBIT: Asian airlines performing well

Source: ICAO history / IATA forecast (September 2010)

Long term fundamentals will lead to growth

World annual traffic
RPK (trillion)

10.0

ICAO total traffic

Airbus Ai b GMF 2010

8.0

6.0 60

Air traffic has doubled every 15 years

Air traffic will double in th i the next t 15 years

4.0

2.0

20-year world annual traffic growth

4.8%
1980 1990 2000 2010 2020 2030

0.0 1970

Source: ICAO, Airbus GMF 2010

Main drivers for growth

Replacement of aircraft in service in mature markets Dynamic growth in emerging markets Continued growth of LCCs, especially in Asia Greater and continued market liberalization Traffic growth on the existing route network where it is more efficient to add capacity than frequency

Asia-Pacific airlines will lead world traffic by 2029

2009 and 2029 traffic volume per airline domicile region 0 Asia-Pacific 500 1,000 1,500 2,000 2,500 3,000 3,500 1 000 1 500 2 000 2 500 3 000 3 500 % of 2009 world RPK % of 2029 world RPK

2009 traffic

2029 traffic +5.8%

+4.1%

27% 28% 28% 6% 5% 3% 3%

33% 25% 20% 9% 6% 4% 3%

Europe

North America

+3.3%

Middle East

+6.8%

20-year world annual traffic growth

4.8%
Latin America +5.5% Africa +5.8%

CIS

+4.7%
RPK (billion)

Source: Airbus GMF 2010

New aircraft demand will average at 1,300 per year

20-year new deliveries of passenger and freighter aircraft 20,000
New aircraft deliveries

16,000

17,870

12,000

8,000 8 000

4,000

4,330 1,910 Single-aisle & Small jet freighters Small-twin aisle & Regional freighters Intermediate twin-aisle & Long range freighters 1,740 Large aircraft & Large freighters

% units % value

69% 40%

17% 26%

7% 16%

7% 18%

Passenger aircraft ( 100 seats) and freighter aircraft (> 10 tons)

Source: Airbus GMF 2010

New aircraft demand will average at 1,300 per year

20-year new deliveries of passenger and freighter aircraft 20,000
New aircraft deliveries

16,000

16,980

17,870

GMF 2009 GMF 2010

12,000

8,000 8 000

4,000

4,240 4,330 2,010 1,910 Single-aisle & Small jet freighters Small-twin aisle & Regional freighters Intermediate twin-aisle & Long range freighters 1,730 1,740 Large aircraft & Large freighters

% units % value

69% 40%

17% 26%

7% 16%

7% 18%

Passenger aircraft ( 100 seats) and freighter aircraft (> 10 tons)

Source: Airbus GMF 2010

20-year demand for over 25,800 new aircraft

20-year new deliveries of passenger and freighter aircraft

17,870 single-aisle aircraft

6,240 twin-aisle aircraft twin aisle

1,740 very large aircraft

% units

69% 40%

17% 26%

7% 16%

7% 18%

Market value of $3 2 trillion $3.2

Passenger aircraft ( 100 seats) and freighter aircraft (> 10 tons)

Source: Airbus GMF 2010

In the future there will be a need to mitigate oil price risk

Oil price (Current US$ per bbl)

140 History 120 100 80 60 40 20 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 Forecast

Source: EIA, IHS Global Insight (November 2010), Airbus

Innovation towards greater fuel efficiency

Efficiency

A30X Game-Changing Solutions

A320 + Sharklets

Today

2012

2013

2014

2015

2016

2017

2024

2025

2026

2027

A320neo to further improve efficiency

Sharklets:
Over 3 5% fuel burn saving on long sectors 3.5% Improved field performance

New Engine Options*

Bypass ratio increased from 5 to 9 ~12 Fan di F diameter i t increased f d from ~64in t up t 81i 64i to to 81in Lower noise levels

15% lower SFC

Maintaining commonality up to 15% fuel burn reduction

The case for the A320neo

Minimum change new engine option, maintaining maximum airframe commonality

Competes well with all new entrants in the market

From 2015 to beyond 2025, demand for up to 4,000 A320neo deliveries

Includes the combined benefit of Sharklets and new engines f Sh kl t d i (up to15% fuel burn saving)

Significant market demand for a significant improvement

A320neo will be built on proven experience

A320 Family in-service statistics: Total take-offs: Over 50 million Average daily utilisation: 8.7FH ( to 14.5FH) (up ) Fleet reliability: 99.7%

A320neo will inherit proven values: A320neo will have a high level of systems and avionics commonality with the A320 A320 systems and avionics are proven to be highly reliable only 1 delay per 500 flights

Maturity and reliability from day one

One A320 take-off or landing every three seconds

A320neo benefits summary

Keeping the best of the A320 Family with added efficiency A mature Family from EIS with low industrial/technical risk Preserved interoperability and training commonality Solid double digit reduction in fuel burn Significant noise reduction No increase in maintenance cost

The best of what we have today with MUCH better fuel burn

Summary

A market for more than 25,800 new passenger and freighter aircraft. Neo will be addressing a market of about 18,000 single-aisle passenger aircraft. The t i i l Th twin-aisle passenger aircraft market will account f more th 5 700 new i ft k t ill t for than 5,700 aircraft deliveries. Some 1,300 very large aircraft to meet passenger demand offering lower cost per seat and more flexibility. The demand for 870 new freighter aircraft deliveries reflects the market needs for highly ffi i t i f hi hl efficient aircraft to compensate further increasing fuel price. ft t t f th i i f l i Strong A380 demand: 32 mega-cities growing to over 80 in 20 years.

Airbus Global Market Forecast 2010 2029

Toulouse, December 13th

Christopher Emerson
Senior Vice President Market & Product Policy

Reducing risk through analysis

20 year aircraft demand forecast, aircraft >19 seats Traffic forecast modeling 155 distinct traffic flows Detailed study of network evolution, including new routes, markets and deregulation hot spots routes Model the impact of evolving airline models e.g. Low Cost Carriers Fleet build-ups covering 938 passenger and 217 freight carriers In use for both Airbus internal and external purposes

Regularly updated to reflect market trends and evolution

Taking into account key industry drivers

Economics
Growth

Demographics
Population growth
Age profiles Middle class

Networks
Global cities
Hubs

Emerging markets
Trade Cycles y

Urbanisation

New routes
Deregulation

Passengers
Ticket price Comfort

Airlines
Fuel
Range Fleet mix

Aircraft
Seats speed utilisation Seats, speed,

Origin and destination

Connectivity Environment

Frequency, load factor

Range, fleet mix Replacement Environment

Business models
Environment

Growth is accelerated by certain macro factors

Recent traffic hot spots

Note : non exhaustive map

Deregulation Strong rising of middle class

Rapid urbanisation LCCs expansion

All regions are currently growing

Passenger traffic (monthly ASKs year-over-year)
16% 12% 8% 4% 0% -4% 8% -8% -12%
United States Western Europe Emerging Economies* g g

Traffic up

13.7% 13 7%

Traffic up

5.4% 4.9%

M M

M M

M M

M M

2007

2008

2009

2010

Emerging economies are leading the way

Source: OAG (ASKs), * 54 emerging economies, Airbus

Still a two-speed World

Real GDP growth (%) History Forecast

8% 6% 4% 2% 0% -2% -4% 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Emerging economies economies*

Mature economies

This is mainly driven by the potential to travel in certain regions

Source: IHS Global Insight (November 2010), Airbus * 54 emerging economies

5.8 billion people will increasingly want to travel by air

China India Middle East Asia* Africa CIS Latin America Eastern Europe Western Europe North America Japan Australasia
* Asia excludes India, China and Japan

Yearly RPK growth 2009 -2029

5.8 58
billion
p p people 2009

1
billion
people 2009

Emerging economies on the edge to strong travel growth

Propensity to travel 10 Trips* per capita - 2009
Bahamas Seychelles Maldives St Lucia Malta Barbados Bahrain Spain Trinidad Greece Brunei Cyprus

New Zealand

Singapore Hong Kong Kuwait Italy

UAE

Macao Australia USA

Ireland Denmark

Iceland

Fiji Samoa Mauritius Cape Verde Costa Rica Jordan Latvia

Puerto Rico

Canada UK Finland

Switzerland Qatar

Brazil

Bolivia Mongolia

China Chi Uruguay

Belarus

Russia uss Slovakia a

Oman Taiwan South Korea Saudi Arabia Estonia Israel Chile Czech Rep. Libya Slovenia Hungary

France Germany Japan Belgium Netherlands

Sweden Austria

0.1
Senegal

Equatorial Guinea

India
Angola Liberia Swaziland Bangladesh Lesotho

World average

0.01
Chad

Iraq

0.001 0 5,000

2009 real GDP per capita 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000

* Passengers originating from respective country

Source: IATA PaxIS, Global Insight, Airbus

Note: GDP in US$2005

Largest 20 traffic flows in 2029

2009 and 2029 traffic volume per biggest traffic flow

0
Domestic US Domestic PRC Intra West. Europe US - West. Europe p P.R. China - West. Europe South America - West. Europe Asia - West. Europe Middle East - West. Europe Asia - P.R. China Domestic India Intra Asia Central Europe - West Europe West. P.R. China - US Indian Sub - Middle East Japan - US Domestic Asia Asia - US Domestic Brazil North Africa - West. Europe Middle East - US

500
2009 traffic

1,000
2029 traffic

1,500

20-year g growth

% of 2029 world RPK

20-year world annual traffic growth

4.8%

RPK (billion)

2.2% 7.0% 3.0% 4.0% 7.1% 5.3% 4.4% 5.8% 5 8% 7.1% 9.2% 6.3% 6.1% 6 1% 7.1% 6.3% 4.5% 6.0% 6 0% 5.2% 6.2% 4.5% 7.1%

11.3% 8.4% 7.2% 5.9% 2.6% 2.4% 2.4% 2.3% 2 3% 2.2% 2.2% 2.0% 2.0% 2 0% 1.9% 1.8% 1.7% 1.7% 1 7% 1.5% 1.5% 1.4% 1.3%

Source: Airbus GMF 2010

Map of traffic growth

GMF 2010 key numbers and 20-year change

2009-2029 AAGR*
<2.5%

2.5-4% %

4-5.5%

5.5-7%

>7%

Source: Airbus GMF 2010

Top 20 fastest growing flows until 2029

2009 and 2029 traffic volume per fastest growing traffic flow

0
Middle East - South America North Africa - P.R. China

50

100

150

200

250

20-year g growth

% of 2029 world RPK

Domestic India 2009 traffic Middle East - South Africa Africa Sub Sahara - P.R. China Canada - Central America CIS - P.R. China P.R. China - South Africa North Africa - South Africa Africa Sub Sahara - North Africa Africa Sub Sahara - South Africa Canada - Indian Sub Africa Sub Sahara - South America Indian Sub - US P.R. China - Russia da C a Indian Sub - P.R. China Asia - Indian Sub Africa Sub Sahara - Middle East Middle East - P.R. China Australia/NZ - Middle East

2029 traffic

20-year annual traffic growth*

8.5%

RPK (billion)

15.2% 9.5% 9.2% 9.1% 8.6% 8.5% 8.5% 8.3% 8 3% 8.3% 8.3% 8.2% 8.1% 8 1% 8.1% 8.0% 7.8% 7.7% 7 7% 7.5% 7.5% 7.4% 7.3%

0.5% 0.1% 2.2% 0.4% 0.2% 0.1% 0.1% 0.2% 0 2% 0.1% 0.2% 0.3% 0.2% 0 2% 0.1% 0.4% 0.2% 0.2% 0 2% 0.8% 0.5% 0.3% 0.7%

* 20-year annual traffic growth referring to the illustrated 20 traffic flows

Source: Airbus GMF 2010

Middle East traffic to double by 2017

Level of RPK from/to each city in 2009 and 2029 for Middle East

2009
100-250 millions 250-1000 millions

2029
1-5 billions >5 billions

From traffic growth to aircraft demand

The way how the traffic is accommodated in the network has a big impact on the type and the number of aircraft the industry requires

Hub & Spoke

Hubs are big p g points Pure point-to-point p p

Tendency to Bigger aircraft ? y gg

Tendency to Smaller aircraft ? y

68% of 2029 traffic volume will be between expanding regions

Market share on total traffic, emerging vs. mature traffic flows

1970
12.0 10.0 8.0 6.0 4.0 2.0 0.0
RPK (trillion)

1990

2010

2029 68%

55% 37% 24% 76%

Rest of World Traffic within & between USA, Canada, Western Europe and Japan USA Canada

32% 63% 45%

Source: Airbus GMF 2010

Traffic will remain concentrated around mega-cities

Level of RPK from/to each city in 2009 and 2029

2009

2029
T 500/3300 cities iti Top

100-250 millions

250-1000 millions

1-5 billions

>5 billions

Strong increase of mega-cities in Asia

Level of RPK from/to each city in 2009 and 2029 for Asia

2009

2029

100-250 millions

250-1000 millions

1-5 billions

>5 billions

Mega-cities are likely to be hubs (e.g. Hong Kong)

Development of passenger numbers on HKG arrival flights from Europe and the Americas

Connecting traffic grew

twice as fast
as nonstop traffic

PAX numbers relative to 2005 level ( (2005 set to 100%) )

140%

130%

Connecting traffic*

120%

5.8% p.a.
110% Nonstop traffic

2.9% p.a.
100% 2005 2006 2007 2008 2009

* Connecting traffic vs. nonstop traffic: e.g. LHR HKG SYD vs. LHR HKG
Source: IATA PaxIS (month of September), Airbus

Successful airlines driven by hub strategy

Attracting passengers to the Hub from a wide range of origin and destination Attracting a wider range of passengers profile (Business, Tourism, VFR, ) Building flexibility to reallocate traffic through the Hub Lowering seat costs with bigger g gg aircraft at the hub

During the crisis the most resilient routes have been:

large routes from/to hubs a wide class mix with many connecting pax

Growth realistically split between frequency and capacity

Allocation of traffic growth to flight frequency and aircraft capacity (as function of frequency and distance)

Frequency

Traffic growth only allocated to

capacity increase
Traffic growth allocated to

frequency and capacity increase

Maximum service level

Limit of frequency increase

Traffic growth only allocated to

frequency increase

Satisfactory service level

Consumer surplus th C l through h frequency increase only

Distance

Qualitative model; model quantitatively differentiated according to different traffic regions and traffic flows
Source: Airbus GMF 2010

Growth in the size and number of mega-cities

A A A B

Destinations with more than 10 000 daily long haul pax

Aircraft delivered continue to be larger than those they replace

185 85

184 181 180 179

184

180

179
175

180 177 173

170

167
165

160 2005 2006 2007 2008 2009

Retirement
Note: Passenger jet aircraft excluding regional types
Source: Ascend, Airbus

Deliveries

Asia-Pacific airlines to further strengthen their dominant position for new passenger aircraft
20-year new deliveries of passenger aircraft 0 Asia-Pacific 2,000 2 000 4,000 4 000 6,000 6 000 8,000 8 000
20-year total deliveries % of 20-year total deliveries

2009-2019 deliveries

2020-2029 deliveries

8,290 5,710 5,610 , 1,790 1,690 1,050 840

33% 23% 23% 7% 7% 4% 3%

Europe

North America

Latin America

Middle East

Africa

CIS

Source: Airbus GMF 2010

GMF freight forecast methodology

Specific methodology for air cargo forecast Regularly updated to reflect market trends and evolution 20 year freighter aircraft demand forecast, payload >10 tons Traffic forecast modeling 144 distinct traffic flows Fleet build-ups covering 217 freight carriers build ups

Source: Airbus GMF 2010

Freight traffic to triple in the next 20 years

Freight traffic forecast

550 500 450 400 350 300 250 200 150 100 50 0 1997

FTKs (billions)

History

Forecast

AAGR 2009-2029 5.9%

86% World FTKs

International Domestic

84% World FTKs

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

2021

2023

2025

2027

Source: Airbus GMF 2010

2029

20-year freighter demand for almost 3,000 aircraft

20-year freighter aircraft demand
Total aircraft demand

1,600 1,400 1,200 1,000 800 600 400 200 0

1,380 New freighters Conversions 380

150
910 150 490

150
670

1,000

420

150
Small Jets Regional & Long Range Large

Source: Airbus GMF 2010

Small jet freighters: 727, 737, A320P2F, BAe 146, DC-9, Tu-204 ; Regional & long range freighters: 707, 757, 767-200, A300, A310, A321P2F, DC-8, DC10 -10, A330, 767-300, 747 Combi, DC10-30 ; Large freighters: 747F, 777, A350, MD-11, A380

New aircraft demand will average at 1,300 per year

20-year new deliveries of passenger and freighter aircraft 20,000
New aircraft deliveries

16,000

17,870

12,000

8,000 8 000

4,000

4,330 1,910 Single-aisle & Small jet freighters Small-twin aisle & Regional freighters Intermediate twin-aisle & Long range freighters 1,740 Large aircraft & Large freighters

% units % value

69% 40%

17% 26%

7% 16%

7% 18%

Passenger aircraft ( 100 seats) and freighter aircraft (> 10 tons)

Source: Airbus GMF 2010

Airbus Global Market Forecast 2010 2029

Toulouse, December 13th