European jetmaker will once again cut rates on its flagship project, the Airbus A380. Having brought back the production rate to 1 per month in 2018 earlier.

Second trim for the Airbus A380

In July 2016, Airbus announced it would be reducing production rates to 1 aircraft per month or 12 per month starting in 2018. The jet maker promised it would deploy cost cutting measure to achieve break-even at 20 aircraft per year in 2017.

The jet maker has now reached an agreement with Emirates, the biggest customer for Airbus’ superjumbo, and Rolls Royce to defer deliveries in 2017 and 2018. The jet maker will postpone 6 deliveries per year, but emphasizes that it will deliver around 12 aircraft in 2018.

So the deferral mirrors a lower production in 2017, which previously had not been planned, and the impact the lower production has on Emirates’ original delivery schedule.

For Emirates the deferral might be a welcome one as the airline industry is currently facing pressure on yield.

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AeroAnalysis was founded in June 2015 and commenced operation in July 2015. In 2013 AeroAnalysis started publishing its work on investing research platform SeekingAlpha, primarily covering the aerospace industry from a unique angle, combining knowledge about investing and aerospace products into unique write-ups that spark healthy discussions and give meaningful insight to investors.