Airbus Delivers Most Jets Since Pandemic Aided by E-Delivery
Airbus Delivers Most Jets of Pandemic Era Even as Crisis Deepens
(Bloomberg) -- Airbus SE delivered more aircraft in September than any month this year, a victory in the European planemaker’s battle to keep factories running and revenue flowing amid a prolonged downturn in air travel.
The tally of 57 jets, mostly single-aisle with a handful of long-range aircraft, compared with 39 handovers recorded in August, according to a statement Friday. Still, Airbus saw no new orders and three cancellations -- a reminder of the downturn caused by the Covid-19 pandemic that’s shown little sign of letting up.
The month’s figures marked progress on a number of fronts for the planemaker, which has struggled to maintain jetliner deliveries as its airline customers seek to defer orders to protect their own cash reserves. September saw the Toulouse, France-based manufacturer whittle down its backlog of finished aircraft, delivering nine of the larger, wide-body planes for which demand has all but dried up.
The previous high for the year was 49 in July. Airbus’s e-delivery option has accounted for around 100 handovers so far, according to a person familiar with the matter. The system allows customers to delegate some essential checks to the manufacturer’s own engineers, avoiding unnecessary travel and delays related to restrictions.
Chinese carriers, including Air China Ltd., China Southern Airlines Co. and China Eastern Airlines Corp., took possession of 18 jets during September. Delta Air Lines Inc. accepted two A350-900 and one A330-900 wide-bodies, along with an A321ceo.
Airbus and its U.S. rival Boeing Co. have been working with cash-strapped customers to address commitments for aircraft made long before the pandemic arrived. Some airlines have decided to accept planes they don’t need, gaining concessions elsewhere and avoiding forfeiture of earlier progress payments.
Wide-Bodies, Jobs
In an illustration of how challenging the current environment is, Airbus announced its first wide-body mandate in almost six months in late September -- for a single tanker-jet. The order wasn’t included in the September figures because it isn’t finalized.
In normal times, Airbus and Boeing would have racked up dozens of orders for hundreds of planes over the summer. Boeing, which hasn’t yet announced September figures, released forecasts earlier this week predicting a sharp contraction in jetliner sales over the next decade.
Airbus slashed its production-rate targets in April and Chief Executive Officer Guillaume Faury said this week they would stay 40% lower through 2020 and 2021. The company still has a significant backlog of undelivered jets, raising questions over whether it may need to cut production further.
The company, which is due to release its third-quarter earnings on Oct. 29, has also been stepping up warnings about jobs. Chief Operating Officer Michael Schoellhorn said last week that plans to slash 15,000 staff would be the minimum requirement.
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