Airbus says any demand slowdown offers respite to strained lines

Airbus SE said any potential slowdown in demand will provide some breathing space as it struggles to ramp up production and deliver its growing backlog of planes. 

While the European plane maker hasn’t yet seen any of its customers seeking to push back deliveries of jets, any such deferrals would actually be welcome, according to Christian Scherer, the chief executive officer of Airbus’s commercial aircraft unit.

“In the near term, a little relief would actually be welcome,@ Scherer said in an interview at the Farnborough International Air Show, joking that “regrettably our backlog is extremely strong.” “If there was some weakening of the backlog, it will help us shorten the delays,” 

Airbus has sought to ramp up output from the depths of the pandemic but was forced to revise its earnings and production goals last month, partly because the company is having trouble getting its supply chain back on track. The bestselling A321neo model is now sold out until 2031 and the advanced, long-haul A350 model is unavailable until 2030, Scherer said. 

In recent weeks, airlines have cautioned that they face pressure on fares as they head into the busiest summer period, as consumers show less willingness to spend on airfares than they were in the years coming out of the pandemic. Scherer earlier this week that that weakness has not yet translated into any notable drop-off in aircraft demand.

Scherer said Airbus tests its backlog on a weekly basis and is very confident about its strength, just as the planemaker works to ramp up production of the A320neo-series to 75 a month.