Airbus loses Q1 order race as delays hamper A320neo

[PARIS] Airbus took 20 new jet orders in March to end the first quarter well behind rival Boeing as delays in deliveries of the A320neo shifted the spotlight back to an earlier model.

The France-based company ended the quarter with 26 orders, but the net total for the year shrank to six after allowing for cancellations and conversions between different models.

Boeing earlier posted 226 jetliner orders for the same quarter, boosted by orders for 21 airframes for its P-8 military surveillance jet project and 15 US air refuelling tankers.

After cancellations, Boeing posted 198 net orders including those military derivatives, but most of the remaining orders were from airlines that have to be identified.

Airbus took 18 orders for its popular A320 single-aisle jet, despite it nearing the end of its production as Airbus switches to the upgraded A320neo, whose deliveries have been delayed by problems at one engine supplier, Pratt & Whitney.

The order tally for A320neo aircraft fell by 8 units in March: hardly enough to dent a backlog of over 3,500 orders but enough to highlight the unexpected extra availability of current-generation A320s as Airbus keeps assembly lines flowing.

Chinese lessor CALC and US budget carrier Spirit Airlines are among customers seizing the chance to pick up extra A320s powered by an earlier generation of engines at what some industry sources describe as "opportunistic" prices.

Airbus delivered 12 A320neos in March to bring the 2017 total to 26, but deliveries remain behind schedule due mainly to problems with engines from Pratt, one of two suppliers.

Airbus aims to deliver about 200 A320neos this year.

In two other widely watched projects it delivered 13 A350s and 3 A380s in the first quarter. In total, it delivered 136 jets in the quarter compared with Boeing's total of 169.

However, analysts said Boeing's deliveries were lower than expected and Wells Fargo Securities cut its earnings forecast for the quarter, while maintaining its forecast for the year.

Boeing shares rose 0.4 per cent, about in line with the US market, while Airbus shares rose more than 1 per cent.

Boeing overtook its European rival as the world's largest jetliner producer in 2012 and analysts say it is expected to retain the title through the rest of the decade, while the prize for most orders is hotly contested each year.

Last quarter's wide order gap with Boeing came as Airbus faces a UK probe into suspected corruption in its use of third-party agents to win contracts in at least five countries, which widened this month as France started its own investigation.

Airbus said in its annual report released ahead of an April 12 shareholder meeting it was reviewing processes for using such agents, most of which have seen their relationships with Airbus cancelled as the company carries out a compliance drive.

REUTERS