Airbus Ships 63 Jets as Oil-Price Jump Fails to Quell Demand

(Bloomberg) -- Airbus SE delivered 63 planes last month, boosting the firm’s plans to ramp up output despite concern that surging oil prices and the conflict in Eastern Europe could dent demand.

The handovers took the first-quarter tally to 142. Net deliveries were reduced by two after trade sanctions imposed over the Ukraine invasion prevented the handover of A350 long-haul jets to Russian flag-carrier Aeroflot PJSC. The planes had been included in December’s tally without ever being collected.

The order backlog took a jolt with a cancellation by Malaysia-based AirAsia X Bhd, though the move had been planned since last year and doesn’t affect production plans.

Deliveries were dominated by A320neo-family narrowbodies, mostly to low-cost carriers including Wizz Air Holdings Plc, Saudi Arabian operator Flyadeal and India’s Indigo, according to data released by Airbus on Friday. The tally also featured nine A330 and A350 wide-bodies and five smaller A220s.

Jefferies analyst Chloe Lemarie said in a note that total handovers were three higher than expected and with a better model mix.

Toulouse, France-based Airbus is targeting at least 720 deliveries across all models in 2022, equating to 60 planes a month. While production averaged 47 jets over the first three months, Chief Executive Officer Guillaume Faury has targeted an increase in A320-output to 65 a month by the middle of next year.

The planemaker notched up 104 gross orders, all from undisclosed customers and for A320-series models.

The net figure took a hit as Airbus logged a previously announced restructuring at AirAsia X. Previously the top customer for the A330neo jet, the low-cost carrier cut its tally to 15 from 78. It also scrapped 10 A321neo orders, though the popularity of that model means Airbus should easily find new takers.

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