Today we take a look at the first quarter numbers for Airbus. If there was any doubts about an order slowdown, these numbers surely confirm it. The 1Q16 order levels are down sharply from 1Q15.
- Orders – The Airbus order decline is drastic. Boeing’s numbers are a lot more robust even with the under priced United 737-700 order. The model with the most interest is the A330-900. This model is being used (effectively) by Airbus to stymie the 787-8. Even in 1Q15 the aircraft was doing well. Airbus has built up a tremendous backlog in the A320 family and it is clear the ceo was of little interest in the period. But the 1Q16 softness is something of a shock.
- Deliveries – There was a slight slowdown in deliveries. Boeing was down 5% and Airbus is down about 7%. Airbus has long prided itself on steady delivery growth. The A320 family production fairly hummed and was about 6% slower in 1Q16. This is pretty good given the transition from ceo to neo has started. Plus the Mobile factory is now starting to deliver aircraft which will add to the 2Q16 numbers. Another key model, the A330 also saw some slowing. The A350, which was running slowly all last year has yet to accelerate deliveries. Airbus has big hopes to delivering a lot of A350s this year, and this should be watched carefully to see if they are able to do so. Finally the A380 stayed on course and benefited from the recent Iran deal. During the period Airbus cancelled two A380s (Air Austral) and then added two back under undisclosed.
Co-Founder AirInsight. My previous life includes stints at Shell South Africa, CIC Research, and PA Consulting. Got bitten by the aviation bug and ended up an Avgeek. Then the data bug got me, making me a curious Avgeek seeking data-driven logic. Also, I appreciate conversations with smart people from whom I learn so much. Summary: I am very fortunate to work with and converse with great people.
John Leahy loosing his MoJo?
Don’t bet on it!