Airbus Executive Says Slowdown in Order Bookings is Normal
May 31 2016 - 4:03AM
Dow Jones News
By Robert Wall
HAMBURG, GERMANY--Airbus Group SE chief operating officer for
customers John Leahy on Tuesday said a slowdown in order bookings
this year is "normal and natural" after years of extremely strong
bookings.
Airbus booked more than 1,000 plane orders in each of the past
three years but has secured only 92 net orders in the first four
months of 2016, feeding investor concern that the boom times for
plane makers are over. Rival Boeing Co., the world's largest plane
maker by deliveries, has secured 265 net orders this year through
May 24.
Mr. Leahy said he still expected order intake at Airbus to be
roughly on par with planes delivered this year. Airbus has
committed to shipping a company record of 650 airliners in 2016. As
long as orders match deliveries Airbus would be "content," he
said.
"We have to get back into balance," Mr. Leahy said after years
in which new deals secured were twice as high or more than planes
delivered. Airbus's backlog of planes orders and not yet built is
above 6,700 aircraft.
That backlog underpins Airbus's plan to boost production,
especially of its popular A320 single-aisle plane. Airbus is
ramping up output to 60 narrow body planes a month in 2019 from the
mid-40s today. Mr. Leahy said there was scope to go even higher,
although others at Airbus are urging caution.
Write to Robert Wall at robert.wall@wsj.com
(END) Dow Jones Newswires
May 31, 2016 03:48 ET (07:48 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Airbus (EU:AIR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Airbus (EU:AIR)
Historical Stock Chart
From Apr 2023 to Apr 2024