Paris Airbus is responding to post-pandemic air traffic growth by strengthening its A320 family. The European aircraft manufacturer announced on Wednesday that it would increase the monthly production of short- and medium-haul aircraft from currently around 50 to a record level of 75 in 2025. The additional capacities for this are to be created at all locations, especially at the Airbus plant in Mobile in the US state of Alabama.
“Looking beyond 2022, we see continued strong growth in commercial aircraft demand driven by the A320 Family,” Airbus CEO Guillaume Faury said in a conference call with journalists. Airbus wants to gradually increase the production of its bestseller for short and medium-haul routes, and the demand after the corona crisis makes him “very confident”. As an interim goal for mid-2023, he announced the construction of 65 jets of the A320 family per month.
Despite a billion-dollar profit in the first quarter, Faury urged caution. “We’re in a complex environment,” he said. These included the “geopolitical tensions” caused by the Ukraine war. Group sales rose by 15 percent to twelve billion euros in the first quarter.
Adjusted earnings before interest and taxes (EBIT) improved by 82 percent to 1.26 billion euros. A positive effect of around EUR 400 million in connection with the Group’s pension obligations contributed to this.
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According to Airbus, it had to write off around 200 million euros because of the consequences of the Russian invasion of Ukraine. Two aircraft could not have been delivered because of the sanctions against Russia. The crisis is also contributing to supply problems and rising prices for raw materials.
Problems with the new long-haul jet
At the same time, the global supply chains are further disrupted due to the consequences of the pandemic. Faury is concerned about the corona situation in the important market of China, where aviation has collapsed due to new lockdowns. “We hope the situation in China will not last long,” he said. “The implications for Chinese airlines are significant.”
Airbus is sticking to its target of 720 aircraft deliveries this year. In the first three months of the year, the Group delivered 142 (previous year: 125) commercial aircraft, 109 of which were from the A320 family. At the same time, orders for 253 aircraft were received, after cancellations by other customers, an increase of 83 machines remained.
Airbus, on the other hand, has problems with its new long-haul aircraft A321 XLR. The company announced that the first deliveries would be postponed from the end of 2023 to spring 2024. The news agency Bloomberg and Reuters had reported that Airbus may have to revise the model.
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The European Aviation Safety Authority (Easa) could therefore require changes to the paneling on the underside. This should reduce the risk of fire that emanates from a central fuel tank. The changes could also reduce the range of the machine.
It is not uncommon for aviation authorities to request changes during the certification phase of a new or revised aircraft. These are discussed and implemented together with the manufacturer. As can be heard from corporate circles, the developers at Airbus do not expect any significant consequences for the range.
Faury kept a low profile on the subject on Wednesday: “We work together with Easa.” He did not want to comment on the details of the design. However, Airbus is confident that it will be able to limit the consequences of the delivery of the A321 XLR being pushed back by a quarter. “We’re trying our best to stay the course.”
More: How Boeing has to fight to catch up.