© Reuters. FILE PHOTO: The logo of Airbus is pictured at the entrance of the Airbus facility in Bouguenais, near Nantes, France, July 2, 2020. REUTERS/Stephane Mahe
DUBLIN (Reuters) – Europe’s Airbus firmed up plans to raise production of its A320-family narrowbody jets by 50% from current levels to a record 75 a month in 2025 as it posted higher-than-expected quarterly earnings on Wednesday.
The world’s largest planemaker is already in the midst of restoring output for in-demand single-aisle models as pandemic travel restrictions fade away, with an interim target of 65 A320-family jets a month in summer 2023, up from 50 a month now.
On Wednesday, it said it would go further and keep increasing monthly output beyond that date to reach 75 a month by mid-decade, cementing proposals tentatively aired last year.
Engine makers, who had led a rearguard action by suppliers worried about having to invest only to face overcapacity if Airbus’s forecasts prove optimistic, partially opened the door to a hike last week by saying they had agreed quotas for 2024.
But some experts fear widespread shortages in global supply chains will disrupt higher output in the short term.
Airbus said its benchmark adjusted operating profit rose 82% in the first quarter on the back of higher deliveries and a one-off change in pension measurements, offset by the impact of sanctions against Russia over the war in Ukraine. It also confirmed a delay in its new A321XLR to early 2024.
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