Airbus expects to deliver more planes this year despite ongoing supply chain issues

Airbus has said its A320 production ramp-up will be delayed due to supply chain disruptions.

The production ramp-up is for Airbus’ narrow-body A320 planes, which the company had previously said it planned to ramp up production for in “2023 and 2024.”

However, due to supply chain disruptions, the company has announced a delay, with the model now estimated to hit a monthly output rate of 65 aircraft by the end of 2024.

Despite this setback, Airbus still expects to deliver more planes this year, with the European jet-making giant stating it now expects to achieve around 720 commercial aircraft deliveries in 2023, up from 661 in the prior year.

Full-year adjusted earnings before interest and taxes are also expected to come in at €6.0 billion, while free cash flow is anticipated to be approximately €3.0 billion.

In a statement, Airbus Chief Executive Officer Guillaume Faury said, “The industry continued its recovery during 2022, with air traffic increasing and airlines turning to their long-term fleet planning.”

“We delivered solid financials despite an adverse operating environment that prevented our supply chain from recovering at the pace we expected.”

On the positive side, Airbus announced growing demand for its wide-body jetliners as international travel recovers from COVID-era restrictions.

The company is aiming to increase its A350 monthly output to nine planes by the end of 2025, up from around six currently.

Monthly output of its A330 model is also expected to reach a rate of four in 2024 from three at the end of last year.

Despite the lower-than-expected guidance, analysts have shrugged off the news, with some calling the core earnings forecast “reassuring,” while noting that the A320 delays stem from short-term supply challenges instead of a lack of demand.

On Thursday, during early European trading, Airbus’ shares surged and reached their highest level in nearly three years.

Earlier this week Airbus has announced a “landmark deal” to provide new aircraft for Air India, worth billions of pounds.

The airline has agreed to purchase 210 Airbus narrow-body jets and 40 of the A350 wide-body. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Wings for all the jest will be made at Broughton.