Airbus raises targets and redefines short-term production targets

An Airbus logo can be seen at the entrance to its factory in Blagnac near Toulouse, France, July 2, 2020. REUTERS / Benoit Tessier

PARIS, October 28 (Reuters) – European Airbus (AIR.PA) has raised its financial targets for the full year after a smaller-than-expected decline in third-quarter profits, and has set itself to target to deliver 600 airliners this year after cutting costs during the pandemic.

The world’s largest commercial aircraft maker reported a 19% drop in third-quarter operating profit to € 666 million ($ 772.7 million) as revenue fell 6% to 10.518 billion.

He said he was looking for an annual operating profit of 4.5 billion euros and free cash flow of 2.5 billion, up from previous targets of 4 billion and 2 billion respectively.

Analysts on average expected a quarterly operating profit of 623 million euros on a turnover of 10.651 billion, according to a consensus established by the company.

Airbus delayed some planned production increases after a week in which several aerospace companies warned of supply shortages, but rounded its main production target of A320 Family narrow-fuselages to 65 per month. here summer 2023, a little later than expected.

In May, Airbus announced that it was calling on suppliers to get a firm rate of 64 per month by the second quarter of 2023.

A quarterly tax return made no mention of studies of potential increases to 70 or 75 per month that it announced in May. Leasing companies, engine builders and other suppliers have questioned whether there is sufficient demand for this.

An industry source said Airbus was continuing to study higher production rates, while others said there had been no agreements with major suppliers so far.

In other programs, Airbus said on Thursday it would increase A330 production from 2 per month to nearly 3 by the end of 2022, following recent sales to airlines such as Germany’s Condor.

He reiterated that he would increase production of the new widebody A350 from 5 to 6 per month, but postponed implementation to early 2023 from fall 2022.

Reporting by Tim Hepher; Editing by Sudip Kar-Gupta

Our Standards: Thomson Reuters Trust Principles.

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