Airbus have readjusted its 2024 outlook, outlining a slowdown of its original Q1 2024 targets for both its aircraft deliveries and A320 Family ramp up plans.
The previous target of 800 aircraft deliveries a year have now been cut to 770, whilst the A320 Family ramp up trajectory has been adjusted to have 75 aircraft produced a month by 2027, not 2026 as originally stated. Since the announcement, made June 25, Airbus’ stock fell by around 10.5%.
The manufacturer has cited supply chain challenges as the main impetus for this adjustment. It clarifies that these ‘challenges’ are specific issues, from the high level of missing parts, recent engine supply shortfalls – for both the CFM and P&W engines- and cabin and equipment distributions. It also cited on-boarding and qualification of skilled workforce as further context for this slowdown.
Notably, it also singled out beleaguered supplier, Spirit AeroSystems, as another main trigger for this slowdown. According to the Financial Times, Airbus is nearing a deal to take on parts of the supplier’s work it does for Airbus’ A220 and A350 programmes, whilst Boeing is then expected to take over the bulk of Spirit AeroSystems’ operations.
Referring back to its slowdown, Airbus’ CEO, Guillaume Faury, told analysts on a call, via Reuters, that: “We are facing headwinds right now; we have to bite the bullet.”
Both this announcement, and Boeing’s own production slowdown struggles, spell difficulties for airlines across the globe, who continue to either expand their fleet or replace their ageing jets with next-generation, more fuel-efficient aircraft.
Photo: Airbus
