Airbus deliveries fell 11% on an industrial basis to 127 jets in the first quarter, highlighting the strain on global supply chains and paving the way for a 12-week sprint to level the trajectory by mid-year.
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 cancelled two deliveries to reflect Western sanctions against Russia.
Airbus delivered 11 wide-body jets, including 5 A350s, 10 small A220 jets, and 106 of its best-selling A320neo-family aircraft in the first quarter of 2023.
Airbus declined to comment ahead of a scheduled release on April 11, when rival Boeing will also report deliveries.
After beginning 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 dashed by ongoing industrial and supply chain issues, which have recently spread to premium wide-body cabins, according to the sources, who spoke on the condition of anonymity.
The long-haul A350 led the quarterly drop, down to 5 aircraft from an unadjusted total of 16 a year earlier.
Deliveries set the tone for profits and cashflow because airlines and lessors pay the majority of the delivery cost.
Airbus CEO Guillaume Faury announced a new assembly line in China on Thursday, aiming to boost medium-term output targets and expand access to a key market.
In addition, the company has strengthened a “watchtower” system designed to monitor lower tiers of the supply chain.
However, the first-quarter shortfall 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 goal of 720 deliveries by mid-year.
Last year, the company was forced to lower its delivery target before abandoning it as supply issues swamped its forecasts.
According to sources, Faury is determined to avoid flying blind into the second half of 2023, which means the half-year performance may be decisive for delivery goals and operational planning.
Information credits to Reuters.
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