Airbus output seen improving from rough January


FILE PHOTO: An employee works at the A320 family final assembly line of an Airbus factory in Tianjin, China, Aug. 12, 2015. REUTERS/Damir Sagolj/File Photo

PARIS: Airbus SE notched an improvement in February aircraft deliveries from January’s subpar showing, indicating progress in contending with supplier challenges that have hindered output at the European planemaker.

Based on estimates from aviation consultancy Cirium Ascend, the company likely delivered between 35 and 39 jetliners last month.

Its January total of 25 fell below Boeing Co’s, marking a rare loss to its US rival in the closely watched metric.

Airbus declined to comment ahead of official February figures expected in the next week or so.

The company has been struggling with a shortage of engines and the knock-on effect of troubles at Spirit Aerosystems Holdings Inc, a major supplier of structural parts.

While February marks an improvement, a two-month total of as many as 64 aircraft would still amount to the slowest start of a year for Airbus since 2021, when its factories were still in the throes of the Covid-19 pandemic.

Airbus shares fell last month when chief executive officer Guillaume Faury said issues at Spirit would affect production of its A350 twin-aisle and A220 single-aisle jets in the first months of the year.

This will slow the ramp-up of the programmes, while the engine shortage is hurting the output of the planemaker’s top-selling A320 narrow body family.

Faury said then that Airbus expected to deliver fewer aircraft in the first quarter of 2025 than a year earlier, adding that the situation should “normalise” in the second half.

Airbus is buying back so-called work packages on the A220 and A350, as most of Spirit is reabsorbed into its former owner, Boeing, but the European company won’t gain control of its parts until July.

The world’s largest planemaker set a goal of handing over 820 aircraft this year, an increase from 2024 but below the pre-Covid peak of 863 planes in 2019.

Last year, Airbus’s January and February output totalled 79 jets.

“Airbus has to pick up pace quickly if they are to achieve 820 jets this year,” said Rob Morris, Cirium Ascend’s global head of consultancy.

Monthly deliveries are a closely watched metric for the planemaking duopoly because the bulk of the payment for an aircraft is released when the jet is handed over.

Airbus typically begins production slowly and gradually increases its pace throughout the year. The first two months’ results were likely baked into the forecast the company made on Feb 20, Morris said.

“I can’t believe that Airbus would issue guidance just a couple of weeks ago that isn’t achievable,” he said. — Bloomberg

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