Airbus and Boeing brace for sharp cuts in wide-body output

Planemakers are looking at drastic cuts in wide-body production amid a slump in demand for the industry’s largest jetliners, manufacturing, and supplier sources said on Thursday.

Deliveries of long-range jets like the Boeing 777 or 787 and Airbus A350 or A330 have been particularly badly hit as airlines seek deferrals and many withhold progress payments.

“At a minimum, the (Boeing rate could fall by at least half,” one industry source said, speaking on condition of anonymity.

Airbus also faces likely cuts in wide-body jet production, but no decision has been taken, the sources said.

Both planemakers declined to comment.

UK-based consultancy Ascend by Cirium has forecast a total surplus of some 5,000 commercial aircraft of all sizes once the dust settles from the industry’s worst-ever crisis.

Boeing Chief Executive Dave Calhoun told employees on Thursday that the company would take steps to balance supply and demand, without elaborating.

“We will need to balance the supply and demand accordingly as the industry goes through the recovery process for years to come,” he said.

Airbus Chief Executive Guillaume Faury said last month that the European planemaker would also adjust supply in the event that airlines fail to take their aircraft.