Newly publicized troubles with the A320neo’s Pratt & Whitney PW1100G turbofans led a series of challenges for Airbus that tarnished positive financial results for last year. Speaking in Toulouse during the company’s annual press conference Thursday, Airbus CEO Tom Enders reported that the problems linked to a knife-edge seal in the PW11000G’s high-pressure compressor affected 98 engines, 43 of which fly on 113 A320neos. Meanwhile, a more difficult than expected ramp-up of the airplanes’ alternative CFM Leap-1As has caused further delays.  

However, commercial aircraft revenues rose 3 percent while order intake increased to €158 billion ($197 billion) from €134 billion ($167 billion)  on net orders of 1,109 airplanes. The backlog by units reached a record year-end level of 7,265 commercial aircraft.

“We are actively and closely working with the two engine makers to solve the problems, and I’m quite confident we can deliver what we plan,” said Enders. Airbus expects to deliver some 800 commercial airplanes this year, including 600 single-aisle A320-family airplanes. It expects neos to account for two-thirds of the single-aisle deliveries, roughly split evenly between airplanes powered by the PW1100G and Leap-1A. Now building 50 A320s per month, Airbus aims to increase the rate to 60 by mid-2019. “A 70-airplane rate is considered but first we have to be very careful with our supply chain,” he said. “We will take our decision this year,” said Enders, who also reported a possible increase in A350 rates, from the current target rate of 10 for 2018 to as many as 13 if market demand warrants. Airbus delivered 78 A350s last year. It plans to deliver the first A350-1000, the biggest member of the family, to Qatar Airways on February 20.

Regarding the A330neo, due to enter in service in the summer 2018 with TAM, Enders called for a “good transition between the ceo and the neo.” Airbus views the aircraft, along with the A321LR, as good candidates to compete with the eventual middle-of-the-market aircraft considered by Boeing.

Airbus also faces challenges involving the integration of the Bombardier C Series. It expects to consummate the proposed joint venture giving Airbus a majority stake in the program by the second half of 2018, and so it plans to integrate order and delivery figures into its current commercial aircraft numbers in 2019. Enders acknowledged that the larger of the C Series family, the CS300, could marginalize the A319.

On the other end of Airbus’s size spectrum, the A380 has become less of a concern now that Emirates Airline signed a firm order for 20 airplanes and took options on another 16. “We have secured enough orders to achieve our goals in terms of deliveries,” said Enders. Airbus plans to deliver 12 A380s this year and eight in 2019. Starting from 2020, the airframer plans to lower the rate to six per year if no new orders materialize. Airbus has committed as part of the Emirates order to produce the A380 until at least end of 2027. Enders sees potential business from China, which now accounts for a single order for five airplanes by China Southern.

Finally, changes in management have also raised challenges. Airbus Commercial Aircraft CEO Fabrice Brégier will leave the group at the end of February, partially replaced by Guillaume Faury, CEO of Airbus Helicopters. Bruno Even, former CEO of Safran Helicopter Engines, replaces Faury. Former Airbus Commercial Aircraft COO for customers John Leahy retired in January, replaced by former CEO of Rolls-Royce Commercial Aircraft Eric Schulz. “I think it’s a generation changing with the departure of Leahy, Brégier, and myself in 2019, and it’s good for the company,” said Enders, who plans to leave Airbus in April 2019.