Airbus tells suppliers to plan for 18% output hike in 2022, sources say
Reuters
Published May 11, 2021 11:45
Updated May 11, 2021 12:50
By Tim Hepher
PARIS (Reuters) - Europe's Airbus is asking suppliers to get ready for a further 18% increase in A320-family jet output during 2022, on top of existing targets for this year, as airlines ready for a partial return to normal travel, industry sources said.
The tentative new goal would lift output of the workhorse domestic and medium-haul jet, which competes with Boeing (NYSE:BA)'s partially grounded 737 MAX, to 53 a month, they told Reuters.
The number being floated for end-2022 remains informal and Airbus has only committed so far to raising output in two steps to 45 a month by end-2021 from 40 now.
But it is the first concrete indication of the shape of recovery Airbus hopes to achieve for its main single-aisle jets next year as it restores coffers depleted by the pandemic.
"We do not comment on speculation regarding the longer-term trajectory," a company spokesman said.
"We see the market recovering to pre-COVID levels in the 2023-2025 timeframe, with single-aisle recovering first," he said, adding, "uncertainties remain".
Airbus, which had been enjoying record jet demand before the virus triggered widespread travel bans, cut output of its best-selling model by a third to 40 a month around a year ago.
In January, it announced plans to increase output to 43 a month in the third quarter and 45 a month in the fourth.
Chief executive Guillaume Faury said last month Airbus aimed for a "steep ramp-up" in 2022 and 2023, without elaborating.
Some suppliers have warned of bumps ahead in restoring pre-pandemic production as smaller parts makers struggle with cash shortages. Airbus must also address industrial snags that held up dozens of deliveries even before COVID-19, they say.
Output of larger wide-bodied jets remains depressed by travel restrictions and is not expected to recover soon.
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Written By: Reuters
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