Coronavirus: Airbus to cut jet production by a third
Airbus has announced its largest ever production adjustment in response to the coronavirus pandemic, cutting output of its best-selling A320 narrow-body family by a third to 40 aircraft a month.
The global shutdown in flights due to the coronavirus has forced many airlines to postpone or cancel orders of new planes.
The French-German aerospace giant also cut production of larger wide-body jets with the A350 falling by about 40 per cent to six aircraft a month, and the A330 family down by more than 40 per cent to two aircraft a month.
Airbus’ chief executive Guillaume Faury said that the production curbs were the reflection of the “new realities” of global aviation, which is facing an unprecedented crisis:
“We have no short-term cancellations in front of us, but we have a lot of requests for postponements and deferrals for 2020 and sometimes 2021,” Faury said: “That’s why we are decreasing our production rates’.
Sign up to Morning Wire’s Midday Update newsletter, delivered to your inbox every lunchtime
On average, Airbus said production would be reduced by a third, but data shows that the manufacturer’s March deliveries fell by half in total.
In total, the firm has produced a further 60 jets that it has been unable to deliver because of the crisis.
Faury went on to warn that it was unlikely orders would grow for some time to come:
“Obviously the situation has changed completely, and I would not expect orders to be the name of the game for the next six, nine or 12 months”.
He added that the firm would continue to make cost-cutting adjustments, with the A350 programme likely to fall to a loss this year.
Airbus had suspended operations at some of its European plants due to health concerns for workers, but is now trying to restore production, a task made more difficult by gaps in its supply chain.