In 2022, Airbus delivered 53 A220 aircraft, the former Bombardier CSeries, according to data released by the company on Tuesday. That’s an increase of just three devices from the year 2021.
Airbus executive chairman Guillaume Faury acknowledged that the number of deliveries had not lived up to the company’s expectations. “Difficulties in the supply chain have prevented us from achieving our goals,” explained the leader during a telephone press conference.
The big boss of Airbus does not believe these difficulties will delay the moment when the program reaches profitability, expected in the “mid-decade”, i.e. around 2025. “We are working to maintain the trajectory of the program. Yes, there are difficulties. We are working hard to recover and maintain our predictions.”
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On average, Airbus delivered 4.4 A220 aircraft per month during the year 2022. It aims to reach a monthly rate of 14 aircraft by 2025. In March, Airbus Canada president and CEO Benoît Schultz said the company had achieved a production rate of 6 devices per month.
The Quebec government has invested nearly $1.68 billion in the CSeries and A220 since 2016. Quebec will be able to buy its stake in 2030, about five years after Airbus believes it will reach profitability.
In 2022, Airbus has received 127 orders for the A220 aircraft. Allowing for cancellations, this represents 105 net orders. Among its 2022 major orders, JetBlue announced in February that it was on order for 30 more aircraft. In October, Air Canada announced the acquisition of an additional 15 aircraft.
A “complex” situation.
Difficulties in the supply chain have been a challenge for all of the multinational’s activities. Airbus has delivered 661 aircraft, an increase of 8% compared to 2021. The company, however, initially aimed for 720 deliveries. “It falls short of our goals,” acknowledged Mr. Faury.
Airbus recorded 1,078 new orders, or 820 net orders after cancellations.
Though Airbus has faced headwinds, the French company is ahead of American aircraft maker Boeing for the fourth consecutive year.
The aviation industry will continue to navigate a challenging environment in 2023, Faury predicted. “Even if the old problems improve, we could be affected by the consequences of the energy crisis in Europe as well as the chaotic situation in China, which has sidelined the zero COVID policy”.
Despite the ‘complex’ context, the management believes it can follow its medium-term production plan and respect the contracts in the portfolio.