After a year when Airbus delivered 735 jets to airlines worldwide (in 2023), Airbus had set a higher target of delivering 800 jets in 2024. However, this scale-up has just been announced to be postponed because of persistent issues in the supply chain.

Airbus cuts delivery targets to 770 aircraft.

Airbus announced that it had cut its earnings and aircraft-delivery goals for 2024 after the European markets closed on Monday, June 24, 2024. The airline stated that persistent supply-chain issues keep the OEM from achieving the earlier target. Airbus stated that these issues are mostly in engines, aerostructures, and cabin equipment.

The company expects to deliver 770 aircraft this year, down from its earlier target of 800. The jet maker has also pushed back its goal to produce 75 A320 family single-aisle jets monthly by one year to 2027.

Chief amongst the troubles seems to be the inability to receive more powerplants (engines), especially with all the turmoil at Pratt & Whitney, which is one of the two engine options (GTF) for the A320 aircraft, with the other being CFM International’s LEAP. Issues with Spirit Aerosystems, which manufactures major parts for Airbus and Boeing aircraft and is expected to be sold back to Boeing this week, might also have a role to play in this situation.

Airbus will also have to take a hit on the financial projections.

Bottomline

Airbus has pared its aircraft delivery target for 2024 from 800 aircraft to 770. The OEM states that issues with the supply chain, such as engines and aerostructures, are responsible for the aircraft makers’ inability to deliver. The OEM will also push its target to build and deliver 75 A320 family aircraft a month from 2026  to 2027.

What do you think will be the impact of this move from Airbus on the rush for aircraft globally?

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