Airbus Ramps Up A320neo Production, Reports Billion-Euro Profit

Paris — Airbus, the world's largest aircraft manufacturer, is further expanding production of its medium-haul jets, with plans to produce 75 A320neo models on a monthly basis from 2025.

Wednesday's announcement came as Airbus presented its latest quarterly figures. Production is to be ramped up gradually, with plans to release 65 aircraft per month by summer 2023, raising output beyond pre-pandemic levels.

However, Airbus announced delays to the delivery of the long-haul A321XLR, from the end of 2023 to spring 2024.Airbus also announced strong quarterly figures showing further recovery from the crisis unleashed by the pandemic. Revenues increased by 15% year-on-year to €12 billion ($12.6 billion).

The company's adjusted operating profit rose 82% to almost €1.3 billion, thanks in part to positive effects associated with pension obligations that contributed some €400 million. However, Airbus also reported sanctions imposed on Russia are taking a toll, with an impact of some €200 million.

Overall, the company's net profit, of €1.2 billion, was more than three times higher than in the previous year, and above analysts' estimates. For the full year, Airbus boss Guillaume Faury sees the Group on track to deliver about 720 commercial aircraft to customers as planned. Adjusted operating profit is expected to remain at around €5.5 billion.

"These Q1 results reflect a solid performance across our commercial aircraft, helicopter and defence businesses. Our 2022 guidance is unchanged, even though the risk profile for the rest of the year has become more challenging due to the complex geopolitical and economic environment," Faury said.

The company delivered 142 commercial aircraft comprising 11 A220s, 109 A320 Family, 6 A330s and 16 A350s. Gross commercial aircraft orders increased to 253 from 39 aircraft last year, with net orders of 83 aircraft after cancellations.

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