PARIS: Airbus (AIR.PA) deliveries fell 11% on an industrial basis to 127 jets in the first quarter, highlighting the pressure on global supply chains and paving the way for a 12-week sprint to level the trajectory by mid-year according to industry sources.
Deliveries were 11% lower than the 142 physical deliveries in the same period last year or 9% lower than the adjusted year-ago total of 140. Last year, Airbus canceled two deliveries to reflect Western sanctions against Russia.
According to the sources, Airbus delivered 11 wide-body jets, including 5 A350s in the first quarter of 2023, 10 small A220 jets, and 106 of its best-selling A320neo-family aircraft. Airbus declined to comment before the April 11 release, when rival Boeing (BA. N) is also expected to report deliveries.
After starting the year with a one-third drop in deliveries, Airbus reduced the cumulative year-on-year deficit to 11% in March, down from 16% the previous month. However, hopes of achieving deliveries in the high 130s in the first quarter were crushed by ongoing industrial and supply chain issues, which have recently spread to premium wide-body cabins, according to anonymous sources.
Airbus CEO’s statement
Airbus CEO Guillaume Faury announced a new assembly line in China on Thursday, with the goal of increasing medium-term output targets and expanding access to a key market. Furthermore, the company has strengthened a “watchtower” system designed to monitor the supply chain’s lower tiers.
The first-quarter shortfall, on the other hand, puts Airbus under pressure to accelerate deliveries in the current quarter or, at the very least, regain enough visibility to confirm or reconsider an annual target of 720 deliveries by mid-year. Last year, the company was forced to lower its delivery target before abandoning it due to supply issues.
According to sources, Faury is determined to avoid flying blind into the second half of 2023, which means that the half-year performance could be critical for delivery goals and operational planning. Nonetheless, Airbus and Boeing are ramping up production to meet rising global demand. Faury stated in China on Thursday that the new line would provide valuable new “surge” capacity.
