Global commercial airplanes maker, Airbus, has revised its production guidance downwards citing an impact on demand due to the COVID-19 pandemic.
The company said it is cutting its production by a third as its inventory is growing because customers are deferring the delivery of their orders due to COVID-19 related restrictions. Breaking down this reduction, Airbus said it would be producing 40 A320s per month, six A350s per month, and two A330s per month until demand for commercial aircraft improves.
The Toulouse-based French airplane maker said it had delivered 122 aircraft and booked new orders for 290 planes in Q1 2020, but 60 airplanes produced by the company during the quarter remained undelivered due to COVID-19 related restrictions. The company added, the number of aircraft delivered fell to 36 in March from 55 in February as customers deferred delivery of their orders.
Recently, Boeing announced plans to suspend operations at its Seattle facility in response to COVID-19, while companies like Haynes and Howmet Aerospace, which supply specialty aluminum to both these companies, also announced plans to reduce their operations in response to weak demand from their customers.