The operating income was SEK 108 M, compared to SEK 78 M in the preceding year. In spite of operating income improving somewhat compared to the preceding year, it is still on a low level. The operating margin amounted to 6.1% (4.7). The operating income continued to be negatively affected by low productivity and low capacity utilization in the industrial system.

Airlines face major losses
A recovery in international air traffic seems to be under way, according to the latest data from IATA (International Air Transport Association). International passenger traffic for August decreased 1.1% year-over-year, which is an improvement over the 2.9% decline in July. Also, in the past two months load factors have increased significantly. The airline industry is struggling to return to profit despite more signs of a recovery in air traffic.

The order intake continues to be low. Airbus and Boeing announced 330 gross orders in the first nine months of this year, compared to 1,410 the year-earlier-period. The backlog for large commercial aircraft decreased from 6,998 at the end of the second quarter to 6,915 at the end of the third quarter. So far this year, the aircraft manufacturers have delivered 717 aircraft, which is 6.4% higher than in the corresponding period last year.

In August, Boeing announced that the first flight of the B787, “The Dreamliner” is targeted for the end of this year and first delivery by the end of 2010. Volvo Aero supplies components to both of the engine alternatives available for the aircraft.

Important aircraft order
Mitsubishi Aircraft has signed a contract with US regional carrier Trans States Airlines for 100 aircraft in the MRJ regional jet family. Under the agreement, Trans States has firm orders for 50 aircraft and options for 50 more. This is the second firm order for the MRJ. Japan’s All Nippon Airways has firm orders for 15 MRJs and options for 10. The MRJ will be powered by the PW1000G engines by Pratt & Whitney, with Volvo Aero as a designer and supplier.