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DUBLIN (Reuters) -Europe’s Airbus firmed up plans to raise production of its best-selling 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 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, while aircraft financiers gathering for annual conferences in Dublin are worried that high production could depress existing assets.
Airbus Chief Executive Guillaume Faury said in a statement the global aerospace industry would benefit from the production increase, which leaves the European manufacturer on course for output well ahead of plans announced by rival Boeing (NYSE:BA).
Airbus said its benchmark adjusted operating profit rose 82% to 1.26 billion euros 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 war in Ukraine.
Revenues rose 15% to 12 billion euros as Airbus left its financial targets for the year unchanged.
It meanwhile confirmed a delay in its new A321XLR to early 2024 as it pursues talks with regulators.
