By Staff Correspondent
On Tuesday, 6 December, aerospace giant Airbus deserted a numerical forecast for jet deliveries and a date for its key production goal. However, the company continued to maintain its financial targets as it heads towards the end of a year plagued by supply chain disruptions and challenges in its factories.
Airbus’s previously stated target of approximately 700 deliveries in 2022 is no longer viable however does not expect to fall materially short of the estimate. According to media reports, the target fell under review following deliveries in November not meeting expectations.
The company confirmed the delivery of 563 aircraft between the months of January-November following an adjustment of an earlier cancellation of two jets. These two aircraft found themselves in Western sanctions against Russia over the conflict in Ukraine; this included 68 in November, compared to what suppliers had described as an industrial planning target of 80.
In a note to investors, Jefferies analyst Chloe Lemarie said that she interpreted the new comments as pointing to around 680 potential deliveries in 2022. It has been reported that the delivery crunch set the stage for an unclear production outlook next year. Once closely tied, production and deliveries have become disconnected since the pandemic hit demand and rippled through supply chains.
Airbus reaffirmed its 65 A320neo-family jets a month production goal; however, it took back its estimated date for implementation. The company highlighted that it would adjust the ramp-up speed between 2023-2024. Airbus still aims to reach a 75 single-aisle jets a month target, albeit with a revised deadline pushed towards 2025.
The company intended to reach a production rate of 65 a month by the initial months of 2024 and pushed this back from mid-2023 earlier this year. Airbus even lowered its original forecast of an estimated 720 deliveries down to about 700.
A stand-off between Airbus and engine manufacturers over supplies is seen as a contributing factor to this issue. Engine companies are facing an issue balancing the maintenance of the existing felts with the increased demand for new aircraft. Broader shortages are also another factor for this production challenge.
Airbus intends to end the current year at a monthly production rate of 50 A320neo-family aircraft, compared to 60 pre-pandemic aircraft. Production speed will depend on how many of this year’s deliveries get pushed into the new year. The aerospace giant has booked 29 new orders and had 14 cancellations last month. As of this year, the company has orders of 1,062 planes or a net total of 825 following adjustment for cancellations.
