*

Q3 revenue and adjusted operating profit beat forecasts

*

Airbus aims to reach production of 12 A220s a month in

2012

*

CEO says previous target of 14 a month is intact, no date

fixed

(Recasts after CEO's media call, adds context from paragraph 2)

By Tim Hepher

PARIS, Oct 29 (Reuters) - Europe's Airbus

lowered a production target for its smallest jetliner on

Wednesday, taking the gloss off forecast-beating quarterly

profits at the rest of its commercial jetliner business as well

as gains in helicopters and defence.

The world's largest planemaker said it aims to speed up

assembly for the Canadian-designed A220 to 12 jets a month in

2026, down from a previous targeted rate of 14, and blamed a mix

of supply concerns and airlines waiting for upgraded engines.

CEO Guillaume Faury told reporters Airbus still aimed to

reach the higher rate, but declined to say when that would be

nor how quickly Airbus would stem losses on the programme, which

it acquired in 2018 to serve the lower end of the jet market.

"We are not dropping the rate of 14 a month, but we will

target 12 instead of 14 next year," Faury said, while

acknowledging that this "doesn't answer the question of when we

will reach the (higher) rate".

On Monday, Reuters reported that Airbus had pushed back the

assembly of some A220s this year and next, and set an internal

target of 12 A220s a month in mid-2026, with a rate of 14 a

month pencilled in for the last few weeks of that year. That

goal is no longer in Airbus' detailed planning.

Airbus has previously indicated it needs to reach a rate of

14 a month to break even on the programme, which it acquired

after its Canadian designer Bombardier ran short of cash. That

is almost twice the estimated current rate of 7-8 jets a month.

'BACKLOADED' DELIVERIES

France-based Airbus said adjusted or core operating profit

rose 38% to 1.94 billion euros ($2.26 billion) in the third

quarter as revenues grew 14% to 17.83 billion. Analysts were on

average expecting core or adjusted operating profit of 1.76

billion euros on revenues of 17.37 billion euros.

Airbus reaffirmed financial forecasts that now include the

impact of tariffs.

It stuck to other key production rate forecasts including 75

of its best-selling A320neos a month in 2027, compared with

industry estimates around 60 now.

Airbus reaffirmed a target for around 820 commercial jet

deliveries for 2025, after industrial concerns over engine

supplies eased during the third quarter.

It faces a sprint to the finishing line after handing over

507 jets in the first nine months. Faury said 2025 deliveries

would remain "very backloaded" and cited continued delays in

shipments from both its main suppliers for the A320neo family.

Planemakers have been wrestling with engine shortages due to

supply constraints and competition from maintenance shops.

Airbus now has a backlog of 32 aircraft assembled and

waiting for engines, Faury said, down from a peak of 60.

On defence, Faury renewed pressure on Airbus' partner in a

Franco-German-Spanish fighter project, saying Dassault Aviation

was free to "move out" if it did not like the agreed

split of work. Airbus, which represents Germany and Spain,

remains committed to the project, he told reporters.

France's Dassault has said there needs to be clearer

leadership, with Dassault running the core fighter and Airbus

left to make decisions on the unmanned part of the system for

which it is responsible. Dassault was not available for comment.

Boeing ( BA ) earlier posted an adjusted third-quarter loss

of $7.47 per share, compared with average expectations of a

$4.59 loss, and took a near $5 billion hit on its delayed 777X.

($1= 0.8575 euros)