Airbus SE said it will almost halve production of its slow-selling A380 superjumbo, casting further doubt over the programme’s future, while warning that engine glitches are still weighing on deliveries of the single-aisle A320 that’s due to become its largest-volume model.
The A380 build rate will be reduced to eight jets a year in 2019, down from 15 this year and 28 in 2016, Airbus said on Wednesday. While the company aims to eke out the backlog in anticipation of revived demand as airports get busier, it said the handful of ongoing contract negotiations may not produce sales.
“Even if we should get another order before the end of the year that will not change the needle on our rate decision, except if we would get an unexpectedly high order," chief executive officer Tom Enders told reporters.
As the A380 struggles for survival, Airbus faces a host of issues with other models that it’s relying on for future earnings.
The revamped A320neo version of the narrow-body workhorse is a major concern, Enders said, with fixes developed by engine supplier Pratt & Whitney proving unreliable, while talks are continuing with Qatar Airways after it cancelled four planes citing quality issues and delays.