Airbus cuts commercial aircraft production by one third
Airbus A350 assembly. Source | Airbus
Airbus (Toulouse, France) announced on April 8 that it is revising its production rates downwards to adapt to the new coronavirus market environment.
In Q1 2020, Airbus booked 290 net commercial aircraft orders and delivered 122 aircraft. A further 60 aircraft were produced during the quarter, highlighting the solid industrial performance, however, they remain undelivered due to the evolving COVID-19 pandemic.
Airbus delivered 36 aircraft in March across the different aircraft families, down from 55 in February 2020. This reflects customer requests to defer deliveries, as well as other factors related to the ongoing COVID-19 pandemic.
The new average production rates going forward have been set as follows:
- A320 to rate 40 per month
- A330 to rate 2 per month
- A350 to rate 6 per month
This represents a reduction of the pre-coronavirus average rates of roughly one third. With these new rates, Airbus preserves its ability to meet customer demand while protecting its ability to further adapt as the global market evolves.
Airbus is working in coordination with its social partners to define the most appropriate social measures to adapt to this new and evolving situation. Airbus is also addressing a short-term cash containment plan as well as its longer-term cost structure.
“The impact of this pandemic is unprecedented. At Airbus, protecting our people and supporting the fight against the virus are our chief priorities at this time. We are in constant dialogue with our customers and supply chain partners as we are all going through these difficult times together,” says Airbus chief executive officer Guillaume Faury. “Our airline customers are heavily impacted by the COVID-19 crisis. We are actively adapting our production to their new situation and working on operational and financial mitigation measures to face reality.”
The full set of orders and deliveries for Airbus for the month of March 2020 here: https://www.airbus.com/aircraft/market/orders-deliveries.html.
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