What Happened
Record Backlogs And Rising Defense Spending Fuel Growth
The aerospace and defense industry is entering 2026 on a strong note, driven by record aircraft backlogs, rising defense spending, and recovering supply chains. According to Fitch Ratings, airlines are flying more passengers, and long-haul travel is rebounding, helping manufacturers like Airbus and Boeing secure years’ worth of production in advance. The report also highlights the industry’s move toward tighter vertical integration, with Boeing’s planned acquisition of Spirit AeroSystems and Airbus’s agreement to take over Spirit facilities. This development was first reported by AeroTime.