Airbus slows A320 ramp-up on weaker market outlook


© Reuters. FILE PHOTO: The nose of an Airbus A380 is seen outside the factory of Stelia Aerospace in Meaulte


By Laurence Frost

PARIS (Reuters) – Airbus has slowed a planned ramp-up of A320 aircraft production, the European planemaker said, as the coronavirus travel slump takes a growing toll on its airline clients.

Output of the single-aisle A320 jet family will increase from 40 a month to 43 in the third quarter and 45 in the last three months of 2021, Airbus said on Thursday, scaling back a previous July target rate of 47 “in response to the market environment.”

The production curtailment comes after Reuters reported that Airbus was in discussions with suppliers over the timing of increases, with delays thought likely. Airbus had until now publicly stuck to its output schedule.

Production plans for widebody aircraft remain unchanged, Airbus said. The decision to maintain stable output of five A350s and two A330s per month “postpones a potential rate increase for the A350”, the company added – in a sign that it aims to avoid a production cut.

The latest setback comes amid deepening uncertainty over the outlook for airlines, notably in Europe.

While Airbus beat its internal deliveries goal in 2020, industry sources say the availability of delivery financing remains blurred by uncertainty over the pace of COVID-19 vaccine distribution and the broader economic outlook.

“It’s still a lot of airplanes for the market to take,” one senior aviation financier said of the revised schedule.

Assembly of the smaller A220 jet will increase from four to five aircraft per month at the end of the first quarter as previously announced, Airbus said.

READ  M&S warns of temporary store closures due to Covid-19 as firms await wage rescue plan - business live

(This story adds dropped word “will” in paragraph 2)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Please enter your comment!
Please enter your name here