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> Economy

Reuters: new headache for Airbus, problem with fuselage panels on A320s

A potential quality defect is delaying some aircraft deliveries — No indications that in-service aircraft are affected — Analysts divided on whether Airbus will meet its annual delivery targets

Newsroom December 1 02:29

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Airbus has discovered an industrial-quality issue affecting fuselage panels on several dozen aircraft in the A320 family, industry sources said.

The possible defect is delaying some deliveries, but there is no immediate indication that it has affected aircraft currently in service, sources told Reuters exclusively, requesting anonymity.

Airbus did not immediately comment.

The origin of the problem could not be determined right away. It surfaced as Airbus intensifies its push to meet demanding delivery targets for the year and while it is also distracted by a weekend aircraft recall prompted by a software glitch.

A person with direct knowledge of the matter said some deliveries have already been affected, but there was no immediate confirmation of how many or for how long.

Industry sources said the aircraft manufacturer delivered 72 aircraft in November—fewer than many analysts had previously expected—bringing the year-to-date total to 657.

The company’s target is “around 820” deliveries for the year, meaning it would need to set a record with more than 160 aircraft delivered in December.

The record for the final month of the year was 138 in 2019.

Will the Company Meet Its Delivery Goal?

Analysts were divided over whether the world’s largest aircraft manufacturer will achieve its delivery targets, which determine revenues and cash flow, since airlines pay the majority of an aircraft’s value upon delivery.

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Jefferies analyst Chloe Lemarie, who tracks aircraft deliveries and forecast 71 for November, said the month’s performance came in lower than expected.

However, the target remains achievable as underlying production continues to ramp up, she added in a note to investors issued before the quality issue became known.

Independent aviation analyst Rob Morris said Airbus could reach 800 deliveries—an outcome some consider sufficient for the company to claim success based on the wording of its guidance—though the final result could end up “slightly lower.”

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