Sources say that Airbus deliveries dropped to 127 jets during Q1

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    Sources say that Airbus deliveries dropped to 127 jets during Q1

    [1/2]A photo of an Airbus A320neo plane is taken at a news conference in Tin Colomiers, France, October 17, 2017. REUTERS/Regis Duvignau/File Photo

    PARIS, April 7, 2007 (Reuters) – Airbus (AIR.PA.) deliveries fell 11% on an industrial basis, to 127 jets during the first quarter. This underlines the pressure on global supply chains, and paves the way for a 12-week sprint in order to stabilize the trajectory by mid-2018, industry sources said.

    Deliveries fell 11% from 142 physical delivery in the same period last years, or 9% less than an adjusted total of 140 for the year. Airbus rescinded two deliveries last year in response to Western sanctions against Russia.

    Sources said that Airbus delivered 11 wide-body aircrafts, including 5 A350s in 2023’s first quarter, 10 A220 jets, and 106 A320neo family aircraft.

    Airbus declined to comment prior to a release due April 11, when Boeing (BA.N.) is also scheduled for deliveries.

    Airbus saw a drop of one-third in deliveries in January and reduced its cumulative year-on year deficit to 11% in March, from 16% the month prior.

    However, deliveries of the high 130s were not possible in the first quarter due to ongoing industrial and supply chain problems, which have recently spread to premium wide body cabins, sources claimed, speaking under anonymity.

    The long-haul A350 was the main reason for the quarterly drop, with 5 aircraft down from 16 unadjusted a year ago.

    DEADLINE MID-YEAR

    Deliveries are the key to profits and cashflow, since airlines and lessors bear the majority of the delivery costs.

    Guillaume Faury, Chief Executive of Airbus, announced a new assembly line for China on Thursday to increase medium-term production targets and improve access to a key market.

    The company also has a “watchtower”, which monitors lower tiers in the supply chain.

    Airbus is under pressure to speed up deliveries in the current quarter or at least to regain enough visibility to confirm or review its annual goal of 720 deliveries by mid-2018.

    The company was forced last year to reduce its delivery target, before finally abandoning it because of supply problems.

    Sources claim that Faury has called 2023 “make-or-break” after last year’s downgrades and is determined not to fly blindly into the second half. This could mean that the half-year performance could be crucial for operational planning and delivery goals.

    Despite this, both Airbus and Boeing are increasing their production to meet growing global demand. Faury stated in China that the new line would create valuable new “surge capacity.”

    Reporting by Tim Hepher, editing by Jason Neely and Robert Birsel. Kirsten Donovan

    Our Standards: The Thomson Reuters Trust Principles.

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