Airbus reported a sharp decline in net profits in the second quarter and issued a warning that problems with the supply chain were forcing it to lower its commercial aircraft production goals.
Airbus reported a sharp decline in net profits in the second quarter and issued a warning that supply-chain issues were forcing it to lower its commercial aircraft production goals.
From a target of 720 aircraft stated in May, Airbus said it now expects to deliver 700 aircraft this year.
Long-term, the business still plans to build 75 A320 a month in 2025, but it now aims to do so at a rate of 65 in early 2024, which is roughly six months later than originally anticipated.
The "geopolitical and economic climate," according to Airbus CEO Guillaume Faury, is "creating new difficulties for the sector," despite "strong" customer demand.
The demand for smaller, two-aisle "widebody" aircraft, which are typically used for lengthy international flights, is substantially greater than that for "narrowbody" aircraft like the A320 and Boeing Co.'s 737 series.
The A321XLR's first flight, according to Airbus, took place in June, marking a significant step toward the aircraft's planned early 2024 entry into service. To fulfill rising market demand as international air travel returns, Airbus says it is looking into the viability of additional rate hikes for widebody aircraft.
The Toulouse, France-based company earned 682 million euros ($696.7 million) during the three months that ended in June, which is a 64% decrease from 1.87 billion euros a year earlier. Sales decreased 10% to 12.81 billion euros, primarily as a result of fewer deliveries of aircraft.
On Wednesday, Boeing Co., a competitor of Airbus, also released lower quarterly earnings, with both net income and revenue declining year over year. The 787, one of the company's best-selling aircraft, cannot be delivered while authorities examine the efforts Boeing is taking to resolve production issues. The defense division of Boeing, which is typically reliable, suffered a decrease in revenue during the quarter.
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