Paris Airshow opens under cloud of India crash, Mideast conflict
By Joe Brock, Tim Hepher, Giulia Segreti and Paul Sandle
PARIS (Reuters) -The Paris Airshow opens on Monday with its usual fanfare of aircraft orders expected to be tempered by concerns over India's deadliest air disaster and escalating missile strikes between Israel and Iran that have rattled the global aviation industry.
Every two years, Le Bourget Airport in the northeast of Paris is transformed into a showcase for the aerospace and defence industry, its sprawling tarmac lined with fighter jets, commercial airliners and autonomous drones.
In the pristine white chalets along the flight line, aerospace executives, government officials and military delegations gather to strike deals and discuss the geopolitical forces shaping the future of aviation.
Delegates say they expect this year's event from June 16-20 to be more sombre and several public activities to be scaled back after last week's air disaster, when an Air India Boeing 787 crashed shortly after takeoff, killing over 240 people.
Investigators are gathering data on the engine, wing flaps and landing gear, though it is too early to draw conclusions, a source familiar with the matter told Reuters in India.
India's aviation regulator has ordered safety checks on the airline's 787 fleet.
The industry has also been shaken by missile strikes between Iran and Israel, which erupted on Friday - just a day after the India crash - forcing carriers to cancel or divert thousands of flights in the latest upheaval to travel in the region.
Aerospace and defence executives are also grappling with uncertainty over U.S. President Donald Trump's shifting tariff policies, which many say have been impacting aircraft, engines and parts, disrupting global supply chains, driving up production costs and straining international partnerships.
The show's opening coincides with the 10th anniversary of Trump's first run for office in 2015 ahead of his first term. But it is the trade policies of his second term that have caused the industry to defend its previous tariff-free status, as a pause in his "Liberation Day" tariffs nears a July 8 deadline.
AIRBUS POLAND WIN EXPECTED
Boeing's CEO Kelly Ortberg and Commercial Airplanes boss Stephanie Pope cancelled their trip to Paris and the U.S. planemaker is scaling back its schedule at the event as it focuses on supporting the India crash probe.
The planemaker is eager to keep a low-key presence and avoid any jarring publicity, though it was too late to remove Boeing advertising banners dominating the venue. Behind Boeing's chalet at Le Bourget, a gleaming Riyadh Air 787 sits on the tarmac.
Boeing is emerging from back-to-back safety, industrial and corporate crises triggered by fatal accidents involving the smaller 737 MAX, which is a separate model to the newer 787.
Aircraft deals will still be announced at the show, where European politics are also driving some of the discussions.
Sources told Reuters that Poland is expected to announce Airbus as the winner of a landmark deal to sell around 47 A220 jets to state carrier LOT - part of a wider reset of relations between Poland and France, where Airbus has its headquarters.
Brazil's Embraer had pushed hard for the deal, the people said. None of the parties agreed to comment.
Airbus is also the front-runner against the same planemaker for a potential order for dozens of A220 jets from AirAsia, with Airbus reviving a proposal for a tighter 160-seat cabin layout while separately showing airlines a stretched version featuring existing Pratt & Whitney engines, sources said.
Airbus was also expected to kick off the event with two Saudi orders from AviLease and Riyadh Air.
Boeing has shelved most announcements including a fleet shake-up by long-time customer Royal Air Maroc, but had already been heading for a quieter week than Airbus after pre-empting the show with big orders during Trump's recent Gulf visit.
The air show is also an opportunity for established and emerging defence and space companies to showcase cutting-edge technologies such as AI and autonomy.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
20 minutes ago
- Yahoo
Treasury Selloff From Israel-Iran Tensions Is Likely to Linger
(Bloomberg) -- Selling pressure on 10-year US Treasuries from the latest round of Israel-Iran conflict is likely to have a lasting effect if past episodes of clashes between the two nations are any guide. Shuttered NY College Has Alumni Fighting Over Its Future As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space Do World's Fairs Still Matter? NYC Renters Brace for Price Hikes After Broker-Fee Ban As American Architects Gather in Boston, Retrofits Are All the Rage Benchmark Treasury yields rose nine basis points since tensions between Israel and Iran turned into a direct conflict on Friday, as a surge in oil prices fanned inflation concern. Before that, Iran's direct strikes in April 2024 and another flare-up between the two nations in October had also pushed up Treasury yields rapidly and kept them elevated over a 30-day period, Bloomberg analysis showed. 'The market is quite volatile, with investors gravitating toward safe-haven assets and driving up crude prices,' said Carlos Casanova, senior Asia economist at Union Bancaire Privee in Hong Kong. This is likely to result in an increase in 10-year US yields. The developments add to risks for Treasury investors who are already confronting worsening inflation worries from President Donald Trump's trade war and spiraling debt concern in the US. Traders demanding a higher premium for the risk of lending to governments are likely to propel yields higher with tensions in the Middle East impacting energy prices. US yields have risen across the board, but gains have been relatively less in shorter tenors, which has steepened the curve. Two-year yields in the US have risen eight basis points since Thursday's close. 'Steepening pressures on the Treasury curve could continue,' said Wei Liang Chang, Singapore-based macro strategist at DBS Group Holdings Ltd. 'Investors may weigh a rise in military expenditure over the longer term due to a more uncertain geopolitical environment, and risks of inflation turning sticky if oil prices are to stay elevated.' American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software New Grads Join Worst Entry-Level Job Market in Years As Companies Abandon Climate Pledges, Is There a Silver Lining? US Tariffs Threaten to Derail Vietnam's Historic Industrial Boom ©2025 Bloomberg L.P.


Wall Street Journal
21 minutes ago
- Wall Street Journal
European Gas Prices Rise on Middle-East Supply Risks
0754 GMT – European natural-gas prices rise in early trade as escalating tensions between Israel and Iran threaten energy flows in the region. The benchmark Dutch TTF contract is up 1.7% to 38.53 euros a megawatt hour. 'Iran doesn't export any meaningful supplies of natural gas, as its gas operations meet its domestic requirements,' ANZ Research analysts say. 'However, the Strait of Hormuz is an important waterway for LNG. It handles about a fifth of the world's LNG supply, mostly from Qatar.' Meanwhile, Israel shut down production at its biggest natural-gas field, the Leviathan, a key source of LNG supplies for Egypt. Analysts warn this could prompt Egypt to increase purchases on the spot market in order to meet its domestic demand, tightening global supplies. (
Yahoo
24 minutes ago
- Yahoo
Gold retreats as investors cash in after Iran-Israel conflict rally
Gold prices retreated on Monday as investors took profits following a sharp rally that had pushed the metal to a near two-month high. The surge had been triggered by escalating tensions in the Middle East, as clashes between Israel and Iran over the weekend raised concerns of a wider regional conflict. Gold futures lost 0.5% to $3,437.40 per ounce at the time of writing, while the spot gold price slipped 0.7% to $3,411.30 per ounce. "It's the joint political risk premium that's rising due to the Iran-Israel conflict at this point that has boosted safe-haven demand for gold," said Kelvin Wong, a senior market analyst, Asia Pacific, at OANDA. Read more: FTSE 100 LIVE: Markets and oil prices rise as Iran-Israel conflict enters fourth day "We have a clear break above $3,400 right now and the short-term uptrend is intact. We are seeing resistance level at $3,500 and with the possibility of breaking new high above the $3,500 level." The latest uptick in gold prices came late last week after Israel launched strikes on Iranian territory, reportedly targeting nuclear facilities near Tehran. In response, Iran fired a volley of missiles at Israeli sites, including in Tel Aviv, its financial hub. Gold is considered a safe-haven asset during times of geopolitical and economic uncertainty. Oil prices extended their gains on Monday amid growing concerns that intensifying hostilities between Iran and Israel could disrupt global crude supply, particularly through the Strait of Hormuz, a key chokepoint for the energy market. Brent crude futures (BZ=F) climbed 0.7% to $74.75 a barrel, at the time of writing, while West Texas Intermediate futures (CL=F) rose 0.9 to $73.66 a barrel. "Buying was driven by the ongoing Israel-Iran conflict, with no resolution in sight," said Toshitaka Tazawa, an analyst at Fujitomi Securities. "But as seen last Friday, some selling emerged on concerns of overreaction." Iran, a member of OPEC, produces around 3.3 million barrels per day (bpd) of oil and exports more than 2 million bpd, much of it to China. While Iran itself contributes about 3% of global oil supply, analysts have raised the alarm over the potential for broader disruptions, particularly through the Strait of Hormuz. This narrow waterway along Iran's southern coast handles around 20% of the world's oil and liquefied waterborne natural gas. Read more: What to watch this week: Inflation, Bank of England interest rates, Accenture, Berkeley and Whitbread "If Iranian crude exports are disrupted, Chinese refiners, the sole buyers of Iranian barrels, would need to seek alternative grades from other Middle Eastern countries and Russian crudes," said Richard Joswick, head of near-term oil analysis at S&P Global Commodity Insights, in a note. "This could also boost freight rates and tanker insurance premiums, narrow the Brent-Dubai spread, and hurt refinery margins, particularly in Asia." The pound was steady against the dollar, just above the flatline at $1.3580, as traders held back ahead of a series of major central bank policy announcements. Attention is firmly on the US Federal Reserve, which is expected to hold interest rates steady at its meeting on Wednesday. The US dollar index ( which measures the greenback against a basket of six currencies, dropped 0.2% to $98.00. Investors are watching closely for any signals from the Fed on the timing and scale of possible rate cuts later this year. Futures markets suggest expectations for two rate cuts by year-end, possibly starting in September, bolstered by tame inflation data last week. Stocks: Create your watchlist and portfolio The Bank of England is also expected to keep rates on hold at its meeting on Thursday, maintaining a cautious stance following a rate cut in May. However, investors will be looking for clues as to whether slowing economic growth and easing wage pressures could prompt a faster pace of monetary easing. In other currency moves, the pound was lower against the euro (GBPEUR=X), trading at €1.1731 at the time of writing. More broadly, the FTSE 100 (^FTSE) was higher, up 0.2% to 8,866 points at the time writing. For more details, check our live coverage in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data