Today at the Farnborough Airshow, Airbus has announced that the company plans to cutback the delivery target for the A380 aircraft by more than half. The company said it would supply 12 of the aircraft per year from 2018, down from the 27 it delivered in 2015 due to the A380’s disappointing demand in contrast to that for its smaller planes.
Airbus said that the A380, which only began breaking even last year, would still achieve that next year with as few as 20 deliveries but gave no further guidance. The announcement of a fall in deliveries raises fears it could revert to making losses. Airbus said “the company will continue to improve the efficiency of its industrial system to achieve breakeven at 20 aircraft in 2017 and targets additional cost reduction initiatives to lower breakeven further.”
Recently, there has been a shift to, twin engine models away from the larger four-engine 544-seat A380. Richard Branson, who had been an enthusiast for the A380 announced on Monday at the Farnborough Airshow that his airline Virgin Atlantic had ordered 12 of Airbus’s A350-1000 twin-engine jets instead of the A380