Airbus Battles Supply Chain Headwinds, Threatening Future Jet Deliveries: Report

Airbus SE EADSY is reportedly encountering additional challenges in its planned increase in passenger jet production.

The world’s leading aircraft manufacturer is struggling with persistent shortages of parts and labor, reported Reuters, citing a source.

It is unclear whether the production slowdown will impact Airbus’s 2024 delivery targets since deliveries usually lag production decisions by several months. Sources noted the assembly of dozens of jets could be delayed to the second half of the year.

Airbus aims to boost production to 75 narrowbody planes monthly by 2026 but faces shrinking buffers for delays. Extended lead times, especially for critical parts like forgings, now up to two years, complicate efforts to meet demand for popular models like the A321neo.

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Additionally, according to the source, some airlines might experience further delays in receiving their jets, which are already an average of 1.5 months late.

An Airbus spokesperson, referring to the last quarterly results, reiterated the company’s delivery goal of 800 airplanes for 2024 but declined to comment further, added Reuters.

Due to supply chain disruptions, Boeing CoBA also faces challenges in meeting airline demand. These ongoing production issues are creating uncertainty among suppliers, who are struggling with variable production rates and the burden of excessive inventory costs.

EADSY, BA Price Actions: At publication Friday, Airbus shares are down 1.24% at $42.38; Boeing shares are trading higher by 0.63% at $173.83.

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Photo: Courtesy Airbus