Ethiopian switches four A350-900 orders to -1000 variant
July 29, 2022
Ethiopian Airlines has upsized four of on-order Airbus A350s from the -900 to the -1000, becoming Africa's first customer for the largest variant of the widebody family. The Star Alliance member's backlog now consists of four A350-1000s and two A350-900s, it notes. "The A350-1000 is the best fit for our dense routes, and we believe that the upsizing will be instrumental in satisfying the increasing demand of customers in our vast global network across five continents," states group chief executive Mesfin Tasew. Ethiopian has received 16 A350-900s from the 22 it had on order from Airbus. Data shows that the airline has a total of 18 A350-900s in service.
Airbus commercial unit's profit stable in first half
July 28, 2022
Airbus's commercial aircraft division generated an adjusted EBIT of €2.27 billion ($2.31 billion) in the first half, compared with €2.29 billion in the same period of 2021. The result includes the non-recurring positive impact from retirement obligations recorded in the first quarter, partly offset by the impact of international sanctions against Russia, which reduced in the second quarter following good progress on the remarketing of some aircraft, the European airframer says The net positive impact from these two non-recurring elements was largely offset by a less favorable currency-hedging rate compared with the first half of 2021. Revenue generated by Airbus's commercial aircraft activities declined 2% year on year to €17.5 billion. A total of 297 commercial aircraft were delivered, the same as in the first half of 2021, and comprised 25 A220s, 230 A320-family jets, 13 A330s, and 29 A350s. Gross commercial aircraft orders increased to 442 from 165 the previous year, while net orders of 259 aircraft, after cancellations, compared with just 38 in the first half of 2021. The commercial order backlog amounted to 7,046 aircraft on 30 June 2022. On 30 June, Airbus's gross cash position stood at €21.6 billion, compared with €22.7 billion at the end of 2021, and its consolidated net cash position at €7.2 billion. Liquidity stood at €27.6 billion. Airbus is this year targeting around 700 commercial aircraft deliveries, adjusted EBIT of €5.5 billion, and free cash flow before M&A and customer financing of €3.5 billion.
Boeing dims Max delivery forecast but sees imminent 787 restart
July 28, 2022
Boeing has reduced its estimate of total 737 Max deliveries in 2022, placing most of the blame on engine supply lines, just after one US carrier cited aircraft wait times as its primary capacity constraint amid surging travel demand. The US airframer now expects total Max deliveries across the year to be in the "low 400s" range. Finance chief Brian West had indicated during an earnings call on 26 January 2022 that the company had a "ballpark" estimate of 500 Max deliveries this year. West said during a second-quarter earnings call on 27 July that Boeing had so far delivered 189 Max jets in 2022. "We don't anticipate making up those deliveries in the back half of the year and will continue to experience monthly variability, including a light month in July," West adds. Boeing intends to hew as closely as possible to its previously stated goal of 31 Max deliveries per month. West admits that the full-year expectation for Max deliveries is "below our original expectations" and "short of what we discussed earlier this year". Boeing chief executive David Calhoun says the slowdown in Max deliveries "does get down to that engine supplier", which, in the case of the Max, is Leap engine maker CFM International, a joint company formed by GE and Safran Aircraft Engines. "That is the world we live in now," adds Calhoun. He notes that overall supply-chain issues have impaired the aviation industry's ability to meet rising demand. "For us, in particular with respect to the commercial side of our business, it relates to engine production [and] engine availability, so that we can predictably deliver airplanes to our customers." Among those customers, US major United Airlines has complained recently that Boeing's delivery delays have played a big role in its inability to fly as much as it wants and needs to. United chief executive Scott Kirby said during an earnings call on 21 July that Boeing's aircraft delivery rate posed the greatest risk to its capacity plan for 2023. "We are clearly exposed to Boeing delivery delays," Kirby said. United has 364 Boeing and 165 Airbus aircraft on order, data shows. Frustrated customers and his own gripes about engine suppliers aside, Calhoun has been buoyed by Boeing's parading at the recent Farnborough air show. "[Farnborough] was important for us. It was an emotional outcome for our people. We're proud of the orders we collected over the course of that week – over 200 orders and commitments. It covered our whole line." Boeing received at the show two big endorsements for its yet-to-be-certificated Max 10: from Delta Air Lines a firm order for 100 plus options on a further 30, and from Qatar Airways the firming up of a deal for 25. Calhoun says Boeing is "working constructively" with the US Federal Aviation Administration toward certification of the Max 7 and Max 10 by year-end. Meanwhile, Boeing is preparing itself to resume deliveries of 787 aircraft at some point in the near future. The airframer paused 787 deliveries in June 2021 and has since been working with the FAA to address manufacturing issues for those aircraft. "We are on the verge of returning to the 787 delivery process," Calhoun says. "I won't give a date – I never have. That's up to the FAA. But we've been working closely with our customers and the regulator on those final steps." Boeing has 120 787s in inventory and is "making progress" on readying them for delivery. West notes: "As stated last quarter, we’re producing [787s] at very low rates and will continue to do so until deliveries resume, gradually returning to five airplanes per month over time. Similar to the 737 programme, the supply chain remains a key watch item for 787 production and deliveries." Calhoun adds that Boeing and the FAA are "approaching closure" on the documentation phase of approval to restart 787 deliveries. "Therefore, the delivery of airplanes is also coming soon."