Airbus plans for a 50% production hike in best-selling A320 jet series

Airbus on Wednesday May 4 firmed up plans for a 50% hike in key narrowbody jet output as it gambles on a steady travel rebound led by the United States, where the European exporter plans to deepen its industrial footprint.

The world’s largest planemaker reaffirmed existing plans to raise A320-family production to 65 jets a month in mid-2023 and confirmed tentative plans to go further by lifting monthly output to 75 in 2025, compared with around 50 a month now.

Coming alongside a higher than expected first-quarter profit, the move highlights a powerful recovery for the industry’s most-sold category of jet, which has propelled Airbus ahead of Boeing – still emerging from a crisis over the 737 MAX.

The decision will lead to a second A320-family assembly line in Mobile, Alabama, increasing the European manufacturer’s presence in arch-rival Boeing’s backyard. So far, Airbus has nine current or planned lines in Europe, the U.S. and China.

U.S. airlines have ordered hundreds of Airbus single-aisle jets, while also placing recent large orders for the MAX.

Chief Executive Guillaume Faury, who spearheaded an Airbus restructuring involving thousands of job cuts when the pandemic hit two years ago, stressed significant work would remain in Europe, where Airbus will continue to build the main parts.

“We can go faster in Mobile and will be gaining critical mass,” he told reporters, adding “It will benefit the whole ecosystem of Airbus and benefit all our sites.”

Airbus CEO also confirmed a delay in development of its A321XLR jet to early 2024 in what industry sources described as a move by regulators to tighten rules to prevent fire risks. Reuters.com