(MENAFN) In response to robust demand and seeking to capitalize on market opportunities, Airbus has unveiled plans to increase production of its advanced wide-body aircraft, the A350. The European aircraft manufacturer aims to elevate production to 12 A350 aircraft per month by 2028, superseding previous projections of reaching 10 aircraft per month by 2026. This strategic move comes at a time when Airbus's main competitor, Boeing, grapples with a protracted crisis of confidence, providing Airbus with a favorable market position.
During the announcement of its first-quarter results, Airbus revealed that its profits before interest and taxes amounted to 577 million euros (USD619 million), falling short of analysts' expectations of 815 million euros in a poll conducted by "Bloomberg." High costs incurred by the company contributed to this variance, with Airbus experiencing a cash outflow of 1.79 billion euros. This outflow was attributed to increased inventory in anticipation of production rate hikes, as well as challenges within the supply chain. Despite these hurdles, Airbus reported a rise in revenues to 12.8 billion euros.
Guillaume Faury, CEO of Airbus, acknowledged the persistent challenges faced by the company during a media call, citing geopolitical tensions and supply chain disruptions as ongoing obstacles. Despite the formidable operating environment, Airbus managed to deliver solid results for the first quarter of 2024. The decision to accelerate A350 production underscores Airbus's confidence in the long-term prospects of its flagship aircraft, as well as its commitment to meeting burgeoning demand in the global aviation market.
As Airbus charts a course for increased production, it remains vigilant in navigating a complex landscape marked by geopolitical uncertainties and logistical challenges. The company's proactive approach reflects its resilience and adaptability in the face of adversity, positioning it favorably to capitalize on emerging opportunities while navigating potential headwinds.
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