Airbus Aims for 720 Deliveries in 2023, Eases A320 Production Rate

Frankfurt — Airbus is postponing the expansion of its medium-haul jet production in view of supply chain issues, the group announced when presenting its annual financial results on Thursday.

The planned record output per month of 75 models of the A320neo family will probably not be reached until 2026 instead of 2025, the European aircraft giant said.

The interim target of 65 aircraft per month will be postponed to the end of 2024.

On the other hand, the world's largest aircraft manufacturer intends to slightly increase the production of its A330neo wide-body jets, from three per month to four in 2024.

For this year, Airbus chief executive Guillaume Faury is targeting the delivery of a total of 720 commercial aircraft - the same as was planned for 2022. In the end, Airbus handed over 661 jets last year.

"The industry continued its recovery during 2022, with air traffic increasing and airlines turning to their long-term fleet planning," Faury said in the results statement.

"We delivered solid financials despite an adverse operating environment that prevented our supply chain from recovering at the pace we expected. The vompany had to adjust its operations accordingly, which led to lower commercial aircraft deliveries than originally planned. We are adapting our production to match supply."

Last year, Airbus increased its revenue by 13% to just under €58.8 billion ($62.9 billion). Earnings before interest and taxes adjusted for special items rose by 16% to €5.6 billion, exceeding the expectations of analysts.

The earnings statement pointed to strong performances by Airbus Defence and Space and Airbus Helicopters, and said the group benefited from a firm dollar.

For the last three-month period of the year, the company recorded a net income of €1.679 billion ($1.796 billion), or €2.13 per share, up from €1.578 billion, or €2.01 per share, in the last quarter of the prior year.

Underlying earnings before interest and taxes (EBIT), however, dropped to €1.773 billion from last year's €1.905 billion in the period.

However, adjusted EBIT rose to €2.146 billion from the previous year's €1.496 billion.

In the fourth quarter, the company generated revenue of €20.644 billion, up from €16.994 billion in the same period the year before.

For the 2022 full-year, the board will pay a dividend of €1.80 per share, higher than last year's €1.50 per share.

Looking ahead, for the fiscal 2023, Airbus expects adjusted EBIT of €6 billion.

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