Airbus Masks Production Shortfall With Help From Bombardier Jet

(Bloomberg) -- Airbus SE will rely on a plane it acquired in July to bolster deliveries and fulfill its pledge to produce 800 aircraft in 2018.

The company stuck with the target it set at the beginning of the year, but only after adding in 18 A220 aircraft -- the model it purchased from Bombardier Inc. In earlier forecasts, the European planemaker had explicitly excluded the latest member of its lineup.

The shift, announced with third-quarter results, highlights a production struggle that’s vexed Airbus all year, starting with an engine-related halt in production of its best-selling A320neo narrow-body. Now interiors and other issues are slowing output, so fewer will be delivered. Airbus on Wednesday also confirmed a Bloomberg report that delays from supplier Rolls-Royce Holdings Plc will lower deliveries of its A330neo wide-body.

While the A320 rampup is ongoing, earlier disruptions “as well as some internal industrial challenges make the full-year 2018 target a greater stretch,” Airbus said in a statement. “A lot remains to be done before the end of the year to fulfill commitments.”

Airbus rose 2 percent to 95.70 euros as of 9:37 a.m. in Paris.

Third-quarter profit more than doubled, as higher deliveries of its A350 wide-bodies swelled cash and outweighed the production stumbles. Costs on the program are coming down as production accelerates, helping to make the plane the cash driver Airbus has needed.

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