Airbus facing upfront costs to support jet output increase

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Airbus CFO says incurring hiring and other costs for output hike

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Aims to realise full efficiencies from investments over time

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CFO reaffirms output goal of 75 A320neo jets a month in 2026

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Industry sources say ramp-up costs went over-budget in Q1

By Tim Hepher

April 10 (Reuters) - Airbus is incurring up-front costs as it prepares for higher jet production and plans a breathing space to absorb them once it reaches its output goal, its finance chief said on Wednesday.

Airbus is targeting a roughly 50% increase in production of its A320neo cash-cow to 75 planes a month by 2026.

But to lay the groundwork it has had to invest in thousands of new workers and is building two new assembly lines.

"We want to pre-hire to be ready to achieve rate-75 in 2026. But of course the costs are hitting us now while the full efficiency only comes in 2026, and potentially 2027 when we are at a stable rate," Chief Financial Officer Thomas Toepfer said in an interview. Airbus is also building two new assembly lines.

(Reporting by Tim Hepher; editing by Diane Craft)