4 views left Get unlimited views with a free account

Get a 360 degree view on a company powered by live data from the GlobalData Intelligence Center. Explore Company Solutions.

Airbus to Increase Production Despite Boeing’s Lag

Industry: Aerospace
Current: Company Performance

As Airbus SE continues to dominate the market for smaller jets, it plans to increase production in 2023 despite supply-chain disruption
By the beginning of 2024, Toulouse, France-based Airbus, will manufacture 65 A320s per month, making it one of the fastest increases in its history
Boeing took the decision because Airbus’s A320 narrow-body aircraft are in high demand, while Boeing’s 737 MAX competes with Airbus’s A320 series

Airbus SE to Increase Production

Despite supply-chain disruption, Airbus SE intends to increase production over the course of 2023 as it continues to lead rival Boeing Co. in the market for smaller jets. The company intends to increase the production of A320 aircraft from 50 per month at the end of 2022 to 65 per month by the beginning of 2024, one of the fastest increases in the history of the Toulouse, France-based corporation. The decision was taken as both aircraft manufacturers continue to struggle with supply-chain problems and as demand for Airbus’s series of A320 narrow-body aircraft outpaces that of Boeing’s competitor, 737 MAX.

Since the 737 MAX was grounded, Airbus has been overtaking Boeing in terms of market share, with the A320neo holding a 61-39 advantage over the 737 MAX as of September 30, 2022. In the aerospace duopoly, the split in the market share is a frequently studied indicator. As reported by the company, the net profit of Airbus SE decreased significantly in the third quarter ended September 2022 over that in the previous quarters in 2022 and 2021.

The net profit of Boeing Co. declined drastically in the third quarter ended September 2022 over that in the previous quarters in 2022 and 2021, as reported by the company.

The capability of Airbus to produce more aircraft as its lead grows will allow it to negotiate better prices with suppliers, which it could use to either increase profitability or undercut Boeing’s pricing. With increasing inflation, Airbus is attempting to negotiate better prices with suppliers. In contrast to Boeing, which on October 26, 2022, cut its guidance for MAX deliveries and reported a deficit for the third quarter, Airbus is likely to report better financial results.

As the demand for international travel picks up and airlines consider acquiring larger planes for use on longer routes, Airbus stated on October 28, 2022, that it is looking to increase the manufacture of its wide-body aircraft.

Get a 360 degree view on a company powered by live data from the GlobalData Intelligence Center. Explore Company Solutions. Get a 360 degree view on a company powered by live data from the GlobalData Intelligence Center. Explore Company Solutions. Explore Company Solutions