Airbus Notifies Airlines of Potential Two-Year Delivery Delays Amid Supply Chain Challenges

Airbus has informed airlines of potential delivery delays for 2025 and 2026, due to persisting supply-chain issues. The company, already struggling with a reduced 2024 delivery target, faces contractual deadline risks as a result of these supply-chain challenges. This news follows Airbus's recent cutback on A320 production and Boeing's production limits following safety concerns.

Airbus, a leading European aircraft manufacturer, has recently informed airlines of potential delivery delays for their orders scheduled in 2025 and 2026 [1]. This update follows Airbus's earlier announcement of reducing its 2024 delivery target from 800 to around 770 aircraft due to ongoing supply chain issues [1].

The company has been grappling with a shortage of engines, aircraft structural components, and interior cabin equipment. The supply chain disruptions have forced Airbus to delay its plan to ramp up the production of the A320neo family from 75 aircraft per month in 2026 to 2027 [1]. This delay indicates that these supply issues are not expected to be resolved in the short term.

Airbus Chief Executive Guillaume Faury attributed the supply chain challenges to a lack of skilled workers and the impact of the global pandemic on the aviation industry [1]. The pandemic grounded the global aviation industry, leaving it stalled, and rendering aircraft manufacturing underprepared once air travel bounced back [1].

Faury also highlighted the supply of new jet engines as a bottleneck in the manufacturing process that contributed to Airbus lowering its outlook [1]. In addition, the demand for refurbishing older planes has resulted in a shortage of cabin interior parts, further delaying aircraft deliveries [1].

Economic and geopolitical challenges have also contributed to the situation and are expected to persist for a while [1]. These factors might prolong the supply chain issues and cause further delays for Airbus, potentially impacting its customers' operations.

Despite these challenges, Airbus has continued to enjoy strong demand for its aircraft, particularly in the last two years, as airlines have been looking to place large future orders to meet surging demand [1]. However, the supply chain setbacks are forcing airlines to fly older aircraft longer, potentially impacting their operational efficiency and environmental performance.

References:
[1] "Airbus cuts delivery target for 2024." AeroTime. June 24, 2024. https://www.aerotime.aero/articles/airbus-cuts-delivery-target-for-2024