Demand for jet paint booms amid signs of airlines recovery

Bloomberg

A bumpy recovery among global airlines has given an unexpected early boost to one corner of the market: demand for aircraft paint. It’s come roaring back as production of new jets rises and pandemic-idled old ones change operators.
At Akzo Nobel NV, the world’s biggest supplier of plane coatings, sales across the product range were back to pre-pandemic levels during the second quarter.
“This was a surprise to us,” Chief Executive Officer Thierry Vanlancker said in an interview. “We thought this was only going to be in 2023.”
The drivers are two-fold. Planemakers Airbus SE and Boeing Co have been scaling up output, with deliveries surging 70% to 453 new aircraft in the first half from a year earlier.
Ownership turmoil has also played a role, and every time a plane changes hands, it needs to be repainted. While airline failures have dropped off sharply since last year, new carriers are still being created, according to aviation consultancy IBA.
The upstarts are picking up leased jets from companies that are defunct, struggling or otherwise slimming down their fleets.
Established players like Delta Air Lines Inc have also gone shopping for used planes. This month, the US major added almost 30 Boeing 737-900s that were part of Indonesian carrier PT Lion Mentari Lion Airlines’ fleet. It also leased seven Airbus A350-900 twin-aisle jets let go by Chile’s Latam Airlines Group, which is in Chapter 11 bankruptcy.
Since January, airlines have returned 790 planes to lessors, while 609 new and used planes have been placed with customers, according to IBA data.