Airbus is facing production issues and new US tariffs, but the company still expects to grow earnings by double digits this year on solid demand for its commercial aircraft.
The European company said Wednesday that it expects to deliver 860 commercial aircraft this year, down from a previous forecast of between 880 and 890, because of production issues with its A320neo planes. "Ramping up production and transforming the production system is a difficult thing to do," Airbus CEO Guillaume Faury said on a call with analysts. He said changes would ensure the company gets"on top" of production issues.
Boeing has meanwhile come under pressure following the crash of two of its 737 Max jets. The plane has been grounded since March while regulators investigate what caused the twin disasters.After posting a huge second quarter loss due to a $5 billion charge to compensate airline customers affected by the Max grounding, Boeing returned to profitability in the third quarter. But that profit is still well below year-ago levels.
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