, Singapore

Ready for takeoff: STE’s recovery in sight as Airbus ramps up production

Airbus targets to increase production to 45 per month by the fourth quarter.

ST Engineering (STE) is set to recover this year as Airbus increases the production of A320 aircraft, the CGS-CIMB said in a report.

Airbus announced in May that it will increase the monthly production of its A320 aircraft to 45 by the fourth quarter of the year from the current 40 per month.

This will be further raised to 64 per month by the second quarter of 2023, higher than the 55 monthly productions recorded in February 2020.

“STE Commercial Aerospace’s production of engine nacelle [US subsidiary, MRAS] and floor paneling [German subsidiary, EFW] are set to recover as Airbus gradually ramps up monthly production of A320 aircraft,” the CGS-CIMB said.

Airbus also tapped suppliers to prepare for a scenario of 70 per month by the first quarter of 2024 and potentially 75 per month by 2025.

Moreover, CGS-CIMB noted STE’s recovery could come ahead of its Singapore peer, SIE, as domestic travel in the US resumes.

The US Transportation Security Administration sees the volume of air travel during the summer to rise.

Some airports across the US have also seen passenger travel volumes of pre-pandemic levels with some already exceeding 2019 travel volumes, which could lead to a pick-up in airframe maintenance, repair, and overhaul services in the US.

“We lift our FY21-23F earnings per share by 5-6% on stronger revenue and margins for STE Commercial Aerospace. We think STE should recover ahead of SIE,” the report read.

Follow the links for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!


Is HDB resale a good investment?
OrangeTee’s Dallas Hassan and Huttons Asia Real Estate Groups’ Lee Sze Teck answer frequently-asked questions on HDB.
Spoof proof: How the new SMS Sender ID Registry prevents phishing
Phishing remains a huge problem in Singapore, with reported incidents jumping from 16 to 5,020 within four years.