Corrected: Airbus says tougher to meet jet delivery goal after snags

Image
Reuters PARIS
Last Updated : Oct 31 2018 | 1:45 PM IST

(Amends paras 1 and 8 to show that although headline delivery target is unchanged, it now includes recently acquired Bombardier CSeries (A220) jets)

PARIS (Reuters) - European planemaker Airbus softened its key target for jet deliveries on Wednesday and warned reaching it would be a "greater stretch" after a sequence of industrial problems.

The cautious tone on deliveries, which drive revenues and profits, came despite higher than expected third-quarter core earnings at Europe's largest aerospace group.

The maker of jetliners, satellites and helicopters said it had made an adjusted operating profit of 1.576 billion euros ($1.8 billion) in the quarter on revenues of 15.451 billion.

Analysts on average expected third-quarter adjusted operating profit of 1.441 billion euros on sales of 15.316 billion, according to a Reuters poll.

Airbus has been struggling with fresh industrial problems as production of its fast-selling A321neo passenger jet hit a snag in Hamburg, Germany, even as bottlenecks eased at some engine makers.

The new problems, which coincide with a queue of aircraft still waiting to be fitted with engines and delivered in the aftermath of the engine delays, were first reported by Reuters.

"A lot remains to be done before the end of the year to fulfil commitments," Airbus said.

It stuck to its headline target of around 800 commercial deliveries in 2018 but said this would now include 18 deliveries of the recently acquired Bombardier CSeries, renamed A220.

Boeing too has been suffering some industrial problems, but the world's largest planemaker last week reported stronger-than-expected third-quarter profit.

The commercial aerospace sector is in the eighth year of an extended upcycle but there are some concerns about airline profitability that usually drives jet orders, speakers at the Airline Economics conference in Hong Kong said this week.

Even so, planemakers and their suppliers are pushing production to record levels based on eight years' worth of new plane orders, and their attention is focused on ironing out flaws in an already stretched global supply chain.

Airbus said deliveries were its first priority.

($1 = 0.8814 euros)

(Reporting by Laurence Frost and Tim Hepher; Editing by Sudip Kar-Gupta and Susan Fenton)

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Oct 31 2018 | 1:37 PM IST

Next Story