European aircraft manufacturer Airbus has ditched its target to achieve “around 700” commercial aircraft deliveries for 2022, describing the goal as “out of reach” amid a complex business environment. Based on its November deliveries of 68 commercial aircraft and supply chain issues, the ongoing war in Ukraine, and other factors, Airbus abandoned the target but reiterated that it did not expect the actual number of jet deliveries for 2022 to be too far off the original goal.
Airbus also said it remains committed to delivering its financial guidance as provided at the nine-month 2022 results, meaning guidance for EBIT Adjusted and Free Cash Flow before M&A and customer financing remains unchanged.
Additionally, Airbus reaffirmed an interim production goal of 65 A320neo-family jets a month but withdrew its implementation date, saying instead it would adjust the speed of the ramp-up during 2023 and 2024. It said it still planned to reach an ultimate target of 75 such single-aisle jets a month, but adjusted the deadline to the “middle of the decade” from 2025.
Airbus had previously planned to reach 65 a month by early 2024, having pushed this back from mid-2023 earlier this year, when it also lowered its original forecast of “around 720” deliveries to the now discarded target of “around 700”.
In November 2022, Airbus also registered 29 new orders and 14 cancellations bringing the backlog to 7,344 aircraft.
Boeing stocks declined after its rival Airbus made the announcement…