Airbus sees significantly higher output in 2024 as demand surges
Airbus said it will significantly increase aircraft output next year as the European planemaker ramps up production across its model range to meet surging demand. The company didn’t provide a new target for output, while saying it’s confident of meeting its goal of 720 deliveries in 2023. The planemaker will increase production of its A350 widebody aircraft, adding to previously announced higher rates on its best-selling A321neo and smaller A220 models. “By definition, by nature, the 2024 output will be significantly higher than 2023, and we’ll be more specific at the beginning of next year,” CEO Guillaume Faury said on a call with reporters after the planemaker reported quarterly earnings. Planemakers are trying to strike a balance between customers buying planes in record numbers and suppliers struggling to keep up with the faster pace of production. Both Airbus and rival Boeing Co. have encountered roadblocks with manufacturing faults at some parts companies, making their ambitious output goals more challenging. The European company still has 161 deliveries to go in the final two months if it wants to meet its target. Airbus made the announcements as it reported third quarter earnings, with adjusted profit before interest and tax of E1.01b. That was short of the E1.17b in an analyst estimates, largely because of charges at the defense and space unit. Airbus said Wednesday that it plans to raise output on the A350 to 10 a month in 2026, after previously saying it would reach 9 by the end of 2025. The aircraft has been a major seller for the company this year, particularly the larger A350-1000 variant that can ply the longest routes, with Airbus approaching an unprecedented 100 individual orders for the plane. While the recovery in long-haul travel took more time after the pandemic than shorter routes, demand for trans-Atlantic flights and trips between Europe and Asia has surged in the last six months. More airlines are also ordering planes that can fly extended routes, in part because closed air spaces over Russia, Ukraine and certain sections of the Middle East have made detour journeys more common.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-11-09/general/airbus-sees-significantly-higher-output-in-2024-as-demand-surges
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Airbus sees significantly higher output in 2024 as demand surges
Airbus said it will significantly increase aircraft output next year as the European planemaker ramps up production across its model range to meet surging demand. The company didn’t provide a new target for output, while saying it’s confident of meeting its goal of 720 deliveries in 2023. The planemaker will increase production of its A350 widebody aircraft, adding to previously announced higher rates on its best-selling A321neo and smaller A220 models. “By definition, by nature, the 2024 output will be significantly higher than 2023, and we’ll be more specific at the beginning of next year,” CEO Guillaume Faury said on a call with reporters after the planemaker reported quarterly earnings. Planemakers are trying to strike a balance between customers buying planes in record numbers and suppliers struggling to keep up with the faster pace of production. Both Airbus and rival Boeing Co. have encountered roadblocks with manufacturing faults at some parts companies, making their ambitious output goals more challenging. The European company still has 161 deliveries to go in the final two months if it wants to meet its target. Airbus made the announcements as it reported third quarter earnings, with adjusted profit before interest and tax of E1.01b. That was short of the E1.17b in an analyst estimates, largely because of charges at the defense and space unit. Airbus said Wednesday that it plans to raise output on the A350 to 10 a month in 2026, after previously saying it would reach 9 by the end of 2025. The aircraft has been a major seller for the company this year, particularly the larger A350-1000 variant that can ply the longest routes, with Airbus approaching an unprecedented 100 individual orders for the plane. While the recovery in long-haul travel took more time after the pandemic than shorter routes, demand for trans-Atlantic flights and trips between Europe and Asia has surged in the last six months. More airlines are also ordering planes that can fly extended routes, in part because closed air spaces over Russia, Ukraine and certain sections of the Middle East have made detour journeys more common.<br/>
