Airbus lifts A350 rate, highlighting edge over Boeing

Airbus will further increase production of its advanced A350 widebody jet as the planemaker benefits from surging demand and as arch-rival Boeing remains absorbed in a crisis of confidence. The European planemaker is moving to a rate of 12 A350 jets a month by 2028, superseding previous plans to reach 10 by 2026, it said as it reported figures for Q1. Earnings before interest and tax reached E577, missing the E814m forecast by analysts in a Bloomberg survey, amid higher costs. The company had a cash outflow of E1.79b because of higher inventory created in preparation for increased production, as well as supply-chain issues. Revenue rose to E12.8b, and Airbus reiterated its guidance issued in February. Airbus has enjoyed a smoother start to the year than Boeing, which has been mired in crisis following a near-catastrophic accident early in January. As a result, the US planemaker has taken up much of the public attention in the global planemaking duopoly, while Airbus has quietly pressed its advantage, picking off orders from Boeing loyalists clamoring for more planes. Still, Airbus continues to struggle with a supply chain that remains constrained, at a time when the manufacturer is ramping up production to satisfy soaring demand. The company still expects to deliver 800 planes in 2024, while Boeing remains under fire from regulators, lawmakers and customers over its manufacturing quality in the wake of the fuselage blowout on a 737 Max 9 on Jan. 5. “We delivered first quarter 2024 results against the backdrop of an operating environment that shows no sign of improvement,” Airbus CEO Guillaume Faury said on a media call. “Geopolitical and supply chain tensions continue.”<br/>