Airbus posts profit, plans new jet assembly line in Alabama

May 3, 2022, 11:39 PM | Updated: May 4, 2022, 3:04 pm

Airbus said Wednesday that its profit in the first three months of 2022 more than tripled to 1.22 billion euros ($1.28 billion), helped by an increase in aircraft deliveries as airlines recover from the worst of the pandemic.

Airbus said it plans to speed up production of its A320 family of planes that compete with Boeing 737s to 75 per month by 2025. To hit that rate, Toulouse, France-based Airbus will build a second final assembly line at its plant in Mobile, Alabama, CEO Guillaume Faury told reporters.

The ramp-up in A320 production builds on a current Airbus goal to build 65 A320s a month by the middle of 2023. The company hopes to take advantage of strong demand for short- and medium-range planes. Boeing is also trying to churn out more 737 Max jets but is producing only about 30 a month.

Richard Aboulafia, an analyst for the consultant AeroDynamic Advisory, said Airbus’ aggressive plans should worry the European company’s rival, Chicago-based Boeing Co.

“The market for single-aisle jets is extremely strong, and the A321neo is doing particularly well,” Aboulafia said. He said Airbus’ objective is to gain 70% of that market, leaving only 30% for Boeing, “and they just might get there.”

While it is forging ahead with ambitious production plans, Airbus suffered a setback in building a new plane, the A321 XLR. Airbus now expects the plane to begin carrying passengers in early 2024, not late 2023. Airbus has encountered more difficulty than it anticipated in meeting certification requirements set by Europe’s aviation regulator.

The market for “narrowbody” planes like the A320 and 737 families is much stronger than demand for bigger, two-aisle “widebody” planes that are mostly for long-haul international flights — a segment of the travel market that has been slower to recover.

Some analysts question whether the supply chain is strong enough to let Airbus hit production targets. Airbus officials said on a call with analysts that suppliers have assured the company they can produce the necessary parts.

Airbus said, however, that Russia’s invasion of Ukraine and the resulting ban on Russian imports has increased the company’s exposure to supply-chain disruptions. Before the sanctions, the company used titanium from Russia in aircraft parts.

In the first quarter, Airbus delivered 142 airline planes, up from 125 a year ago. Revenue rose 15% from a year earlier, to 12 billion euros ($12.645 billion).

The company stood by its targets of delivering 720 airliners this year and producing 5.5 billion euros ($5.8 billion) in adjusted profit before taxes, even with rising risks due to the “complex geopolitical and economic environment,” Faury said.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Medical staff carry an injured person on a stretcher at the emergency department of the First Repub...
Associated Press

Russia to medevac wounded in school shooting to Moscow

MOSCOW (AP) — More than a dozen people wounded in a school shooting in central Russia will be medevaced to Moscow for further treatment, authorities said Tuesday, a day after a gunman killed 17 people and wounded 24 others. Health Minister Mikhail Murashko said that a medical evacuation is planned for 15 of the injured, […]
1 day ago
TV screens show the news programs reporting the state funeral for former Japanese Prime Minister Sh...
Associated Press

Abe’s militaristic funeral captures Japan’s tense mood

TOKYO (AP) — The leadup to former Japanese Prime Minister Shinzo Abe’s controversial state funeral could seem like a never-ending exchange of heated words — both for and against. But it was the images of Tuesday’s ceremony that most clearly told the story of a nation still deeply divided over the legacy of perhaps the […]
1 day ago
FILE - Shakira poses for photographers upon arrival at the premiere of the film 'Elvis' at the 75th...
Associated Press

Shakira to face trial for tax fraud in Spain

BARCELONA, Spain (AP) — A Spanish judge on Tuesday approved a trial for Colombian pop singer Shakira on charges of tax fraud. Spanish prosecutors accused the entertainer in 2018 of failing to pay 14.5 million euros ($13.9) in taxes on income earned between 2012 and 2014. Prosecutors are seeking an eight-year prison sentence and a […]
1 day ago
This undated Yewdall family photo provided by attorney James Pepper shows Cheryl Yewdall, a woman w...
Associated Press

Suit: Care home resident died with paper jammed in windpipe

Cheryl Yewdall spent most of her life at a Philadelphia care home for people with developmental disabilities. It was there, on Jan. 26, that the 50-year-old was found face down on the floor, in a pool of urine, suffocating on a large wad of paper that had been stuffed down her throat. She died five […]
1 day ago
This photo provided by David Patterson, of California, shows Patterson in May 2022. Patterson was a...
Associated Press

Rules sought for ‘gooning,’ taking troubled kids to care

ST. LOUIS (AP) — Within what’s known as the secure transport industry, it’s called “gooning.” Brawny men show up under the cover of darkness and force a teenager into a vehicle, taking them against their will to a boarding school, foster home or treatment center. The process is typically initiated by parents at wit’s end […]
1 day ago
Director General Rafael Mariano Grossi speaks at the 66th General Conference of the International A...
Associated Press

UN nuclear watchdog, Iranian officials meet in Vienna

BERLIN (AP) — The head of the United Nations’ nuclear watchdog said he met with his Iranian counterpart in Vienna for talks about an ongoing investigation into manmade uranium particles found at undeclared sites in Iran. “Dialogue has restarted with Iran on clarification of outstanding safeguards issues,” Rafael Grossi, director general of the International Atomic […]
1 day ago

Sponsored Articles

Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Work at Zum Services...

Seattle Public Schools announces three-year contract with Zum

Seattle Public Schools just announced a three-year contract with a brand-new company to the Pacific Northwest to assist with their student transportation: Zum.
Swedish Cyberknife 900x506...

June is Men’s Health Month: Here’s Why It’s Important To Speak About Your Health

According to the Centers for Disease Control and Prevention, men in the United States, on average, die five years earlier than women.
...

Anacortes – A Must Visit Summertime Destination

While Anacortes is certainly on the way to the San Juan Islands (SJI), it is not just a destination to get to the ferry… Anacortes is a destination in and of itself!
...

Ready for your 2022 Alaskan Adventure with Celebrity Cruises?

Celebrity Cruises SPONSORED — A round-trip Alaska cruise from Seattle is an amazing treat for you and a loved one. Not only are you able to see and explore some of the most incredible and visually appealing natural sights on the planet, but you’re also able to relax and re-energize while aboard a luxury cruise […]
Airbus posts profit, plans new jet assembly line in Alabama