Airbus Executive Says Slowdown in Order Bookings is Normal

By Robert Wall

HAMBURG, GERMANY--Airbus Group SE chief operating officer for customers John Leahy on Tuesday said a slowdown in order bookings this year is "normal and natural" after years of extremely strong bookings.

Airbus booked more than 1,000 plane orders in each of the past three years but has secured only 92 net orders in the first four months of 2016, feeding investor concern that the boom times for plane makers are over. Rival Boeing Co., the world's largest plane maker by deliveries, has secured 265 net orders this year through May 24.

Mr. Leahy said he still expected order intake at Airbus to be roughly on par with planes delivered this year. Airbus has committed to shipping a company record of 650 airliners in 2016. As long as orders match deliveries Airbus would be "content," he said.

"We have to get back into balance," Mr. Leahy said after years in which new deals secured were twice as high or more than planes delivered. Airbus's backlog of planes orders and not yet built is above 6,700 aircraft.

That backlog underpins Airbus's plan to boost production, especially of its popular A320 single-aisle plane. Airbus is ramping up output to 60 narrow body planes a month in 2019 from the mid-40s today. Mr. Leahy said there was scope to go even higher, although others at Airbus are urging caution.

Write to Robert Wall at [e-mail]

(END) Dow Jones Newswires

May 31, 2016 03:48 ET (07:48 GMT)

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