Prepare for Rapid Air Travel Rebound, Airbus Tells Industry

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Airbus laid out a long-term plan to return aircraft production to pre-pandemic levels, betting air travel and jet demand will bounce back quicker than others expect

SE laid out a long-term plan to return aircraft production to pre-pandemic levels, putting its suppliers and customers on notice that it is betting air travel, and jet demand, will bounce back quicker than others expect.

Industry executives have repeatedly said they expect travel demand to stay below pre-Covid levels for years. While Airbus has penciled in two full years before its factories are back where they were before the crisis, it is essentially telling its globe-spanning supply chain that the plane maker is sticking to what has been for months a more optimistic forecast for air travel recovery than many in the industry.

Airbus slashed production and used the crisis to restructure its manufacturing footprint. At the start of the pandemic, it outlined plans to cut as many as 15,000 staff. It has also retooled factories, consolidated locations and reorganized parts of its business, particularly in its aerostructures units, to lower costs. Mr.

Boeing, meanwhile, has outlined plans to increase its output to 31 737s a month in early 2022, with “further gradual increases to correspond with market demand.” Airbus has previously laid out plans to reach production of 45 A320s a month by the second half of this year.

 

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