Airbus is set to increase the production rate for the A350 as demand surges

Airbus SE is set to boost production of its advanced A350 widebody jet as it capitalizes on rising demand for long-distance travel and wide-body aircraft, amidst the ongoing crisis affecting its competitor Boeing due to issues with the B737 Max.

The surge in orders for Airbus’s A350 aircraft has instilled confidence in the company, prompting them to ramp up production rates. This move is particularly advantageous as Boeing continues to grapple with production quality issues surrounding its 787 and 777x aircraft.

In 2024 alone, Airbus has received 137 orders for the A350, signaling a need to expand manufacturing capabilities to meet customer demands. With 1,277 orders received and 592 aircraft delivered as of April 2024, Airbus is poised to fulfill pending deliveries efficiently.

The European aircraft manufacturer announced plans to increase production of A350 jets to 12 per month by 2028, surpassing earlier projections aiming for 10 per month by 2026. This decision was disclosed alongside the company’s first-quarter figures.

The Asian market is proving lucrative for the A350, with significant orders from airlines like Indigo and Air India, totaling nearly 70 aircraft commitments for the future. Meanwhile, Airbus is progressing with its A220 and A320 programs, aiming for a monthly production rate of 14 and 75 aircraft, respectively, by 2026. Additionally, the long-range A321XLR is anticipated to commence service in the third quarter of the current year.

In contrast, Boeing has been compelled to scale back production due to regulatory pressures aimed at enhancing factory processes. While Airbus anticipates a positive market outlook, Boeing continues to face challenges with FAA certification and quality approvals, resulting in ongoing delays for its 737 Max and 777x models.

Financially, Boeing reported a significant cash burn of $3.9 billion in the first quarter, leaving it with $7.5 billion in cash and short-term securities by the quarter’s end, down from $16 billion at the beginning of the year. Consequently, Boeing’s stock has plummeted by 38% in the year so far, contrasting with Airbus’s 14% gain, marking Boeing’s lowest performance in over a year.

For a full listing including details on customers and regions, as well as historical data for the previous year, go to the download section below.

• March 2024 deliveries: 63 deliveries to 32 customers
• March 2024 gross orders: 137
• 2024 deliveries to date: 142 deliveries to 45 customers