Airbus reports on a better performance in March. The aerospace company records a surge in deliveries thanks to a rebound in air travel in China and the United States. This consequently drives the shares for Airbus higher.
Airbus: improved business, improved shares
Reuters reported that Airbus has recorded slightly higher deliveries for the first quarter. Along with the surging deliveries, Airbus noted 29 gross orders which include a new deal for 20 A220s to a buyer. The news further pushes shares for Airbus more than 2% early on Friday.
The company’s net orders, however, are in negative territory for the first quarter. Airbus adjusts its net orders for cancellations, and the company registered a total of minutes 61 net orders. In the previous month, Airbus has revealed to have Norwegian cancellations dominate the net orders.
Accordingly, Reuters expects the brisk pace of deliveries might bring Airbus’ deliveries to match or even exceed the first quarter of last year’s record at 122 deliveries. Several analysts also predict that it might not be impossible for the world’s largest planemaker to hit its full-year target. Airbus will need to repeat the 566 aircraft supply from back in 2020 to catch on to the prediction. Though, suppliers say that Airbus is aiming for over 600 deliveries.
Pandemic slows down air travel business
COVID-19 pandemic is especially detrimental to air travel businesses. Airbus and Boeing had to cut production and lay off thousands of people due to the decreasing demands. Boeing had it even harder due to the safety crisis over its 737 MAX.
With the emerging domestic recovery, such as in the United States and China, analysts said they will be paying attention to production plans for the rest of the year. Meanwhile, Europe is still beclouded by concerns over a possible third pandemic wave that prolongs deprecating long-range travel situation.
Read also: Airbus to Study Hybrid-Electric Aircraft Development
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