Airbus raises targets, rejigs near-term production goals

Paris, Oct. 28 (BNA): European airline Airbus raised full-year financial targets after a smaller-than-expected dip in third-quarter profit, and committed to a target of 600 aircraft deliveries this year after cutting costs during the pandemic.

The world’s largest commercial aircraft maker posted a 19% drop in its third-quarter operating profit to 666 million euros ($772.7 million) with revenue slipping 6% to 10.518 billion, Reuters reported.

It said it was looking for full-year operating profit of 4.5 billion euros and free cash flow of 2.5 billion, up from previous targets of 4 billion and 2 billion, respectively.

Analysts, on average, expected quarterly operating profit of 623 million euros and revenue of 10,651 billion, according to a consensus compiled by the company.

Airbus has postponed some planned production increases after a week in which several airlines warned of supply shortages but raised its main production target of the A320 family to 65 a month by summer 2023, slightly later than planned.

In May, Airbus said it was calling on suppliers to secure a flat rate of 64 per month by the second quarter of 2023.

The quarterly earnings statement did not mention studies of potential increases to 70 or 75 months, which were announced in May. Rental companies, engine manufacturers and other suppliers wondered if there was enough demand for it.

An industry source said Airbus was continuing to study higher production rates, while others said there was no agreement yet with major suppliers.

In other programs, Airbus said Thursday it would raise A330 production from 2 per month to nearly 3 at the end of 2022, following recent sales to airlines such as Germany’s Condor.

It confirmed it would increase production of the newer A350 wide-body aircraft from 5 to 6 per month, but has delayed implementation until early 2023 from fall 2022.

MI