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- Aircraft Makers Pitch Up to Prepandemic Skies: Airbus
Aircraft Makers Pitch Up to Prepandemic Skies: Airbus
Boeing’s major peer, European Airbus, is seen to be in a slightly better condition as the latter has more diversified aircraft deliveries. The company’s management is aiming to increase production to 75 commercial aircraft a month with Airbus A320neo as a flagship. The company is moving deliveries for next year as it simply could not produce the number of aircrafts needed to meet demand.
The company does not have enough qualified employees and is facing a lack of components needed to establish a steady production. Management has revised the production plan from 720 to 700 commercial aircrafts for the year of 2022. Even with this decrease, the plan is questionable as the company produced 495 aircrafts by the beginning of November. During some months production slowed down to 30-40 units, while during some other month is was above 50 units. The peak month for production is usually the last month of the quarter. But there are some positive developments now, as Airbus produced 60 aircrafts in October, beating September by 55 units.
Nevertheless, Airbus must produce 205 aircrafts in the last two months of this year in order to stick to the plan and this seems to be very complicated. The company has 61 aircrafts in production for November and has not managed to produce more than 89 units during the month of December over the last three years.
In order to push stock prices up, Airbus needs to restore production to prepandemic levels. The company delivered 863 commercial aircrafts in 2019, 566 in 2020, and 611 in 2021 and it seems that for 2022 the production figures will not exceed the levels of the past two years by very much. But even if production is above 650 aircrafts, it would be a positive signal for AIR stocks.
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