Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Airbus speeds deliveries, books key Chinese jet order

Published 11/08/2022, 01:27 PM
Updated 11/08/2022, 06:30 PM
© Reuters. FILE PHOTO: A logo of Airbus in Blagnac near Toulouse, France, July 2, 2020. REUTERS/Benoit Tessier/File Photo

By Tim Hepher

PARIS (Reuters) -Airbus deliveries accelerated in October to reach 497 airplanes so far this year, or an underlying total of 495 after excluding two Aeroflot deliveries cancelled due to Western sanctions against Russia, the planemaker said on Tuesday.

Airbus delivered 60 jets in October, up from 55 the previous month. It still has what most analysts have called a stretching but broadly achievable task to reach a target of 700 deliveries in 2022, following problems with tattered global supply chains.

"Airbus is going to have to match 2017 (201 deliveries for the two months remaining), 2018 (216) and 2019 (215 aircraft)," Agency Partners analyst Sash Tusa said in a note to investors.

"None of those years were much fun in production and management terms".

Within the total deliveries so far this year, wide-body deliveries were robust, he added, underscoring recent signs from manufacturers and leasing giant AerCap of a recovery in a segment of the market that has long been in the doldrums.

Airbus also posted 177 new orders in October or 163 after the rejigging of a new order from British Airways owner IAG (LON:ICAG), which placed an expanded order for 59 aircraft that superseded an earlier batch of 14 single-aisle jets.

Airbus also booked an order for 40 jets from traditional Boeing (NYSE:BA) operator Xiamen Airlines, which had provisionally added Airbus as a supplier in September in a sign of Beijing's apparent tilt towards Europe amid tensions with Washington.

China watchers said the airline's decision to loosen its dependence on Boeing was viewed as particularly symbolic after Chinese President Xi Jinping visited the cockpit of a larger Xiamen 787 on a visit to Boeing's Seattle-area factory in 2015.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Boeing declined comment on the order, whose publication coincided with the first day of China's Zhuhai Airshow.

The update comes on top of existing orders for 140 jets re-announced by China last week in what experts described as an effort to showcase a visit by German Chancellor Olaf Scholz.

However, that appeared to catch both the planemaker and German officials by surprise as Scholz sought to play down new deals amid domestic concerns that Berlin would prioritise economic ties over security and other strategic matters.

The Xiamen deal brought Airbus orders so far this year above the 1,000 mark. After 223 cancellations, its 1,033 gross orders fell back to a net total of 810 in the first 10 months.

Boeing earlier said its deliveries fell in October as it faced quality issues, while orders rose as the U.S. planemaker continued to see strong demand for new aircraft.

So far this year it has booked 664 new orders or 550 after cancellations and before accounting adjustments.

Boeing, which is in the midst of recovering from a 737 MAX safety crisis and industrial problems on the 787, said it had delivered 363 jets in the first 10 months of the year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.