Toulouse-based Airbus is set to boost production of its A350 aircraft to 12 units per month by 2028, a move driven solely by surging consumer demand and not by the challenges faced by its U.S. competitor Boeing, according to Airbus Chief Financial Officer Thomas Toepfer.
Speaking to CNBC’s Charlotte Reed, Toepfer emphasized that Airbus’s decision reflects the robust commercial momentum experienced by the A350. He noted that nearly half of Airbus’s gross commercial aircraft orders in the last quarter were for variants of the A350, indicating strong market demand. Toepfer expressed confidence that this momentum would persist in the future.
While aviation firms worldwide are grappling with supply chain and production issues amid soaring demand for new aircraft, Airbus’s gross commercial aircraft orders surged to 2,319 in 2023, a significant increase from 1,078 in 2022.
Contrary to speculation, Toepfer clarified that Boeing’s production challenges, particularly with its 737 Max model, did not influence Airbus’s decision to ramp up A350 production. Boeing has reduced output of its 737 Max following its involvement in two fatal crashes and a midflight incident, leading to ongoing supply chain disruptions.
Toepfer acknowledged that the supply chain environment has remained challenging, with issues persisting across various materials. He highlighted that these challenges affect Airbus’s efforts to scale up production. Furthermore, he emphasized that Boeing’s troubles have added pressure and repercussions to the supply chain, affecting not only the industry as a whole but also Airbus specifically.
In response to supply chain disruptions, Airbus is exploring options to ensure the continuity of critical work packages, including discussions with Spirit, a key supplier for both Airbus and Boeing. Toepfer revealed that Airbus is considering taking over certain work packages from Spirit to safeguard the supply chain’s stability.
Despite Airbus’s quarterly results falling short of analysts’ expectations, Toepfer remains optimistic about the company’s future prospects. Airbus reported a 25% year-on-year decline in operating profit to 577 million euros ($619 million) in the first quarter, according to Reuters. Meanwhile, Boeing posted a quarterly loss of $355 million.
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Sources: AirGuide Business airguide.info, bing.com, reuters.com, afp.com
