Pulling punches

30 Apr 2019 By Ed Cropley Follow @edwardcropley

The European planemaker is wary of ramping up output despite its U.S. rival’s 737 MAX problems. Avoiding a price war may be one reason and airlines have yet to commit to switching suppliers. Without firm orders, investing in more production would squeeze free cash flow further.

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European planemaker Airbus on April 30 reported that first-quarter revenue rose 24 percent from a year earlier to 12.55 billion euros while adjusted operating profit rose to 549 million euros from 14 million euros in the same period in 2018, when A320neo deliveries were hit by engine delays.

Chief Executive Guillaume Faury said there was strong demand for the A320neo mid-range jetliner but dismissed expectations the company would benefit from Boeing’s crisis over its rival 737 MAX, which was grounded after two fatal crashes.

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