SEATTLE—Airbus no longer expects to reach its target of producing 75 A320neo family aircraft per month in 2026 and has cut back its delivery gui

Airbus Cuts Commercial Aircraft Production Targets, Records Space Charges

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2024-06-30 14:30:06

SEATTLE—Airbus no longer expects to reach its target of producing 75 A320neo family aircraft per month in 2026 and has cut back its delivery guidance for 2024.

The decisions come as the manufacturer is suffering from renewed constraints in its supply chain that make the targets unrealistic. Airbus now expects to reach rate 75 in 2027, one year later than planned of late. The company had already pushed out the target before because of supply chain issues. In 2024, Airbus now aims to deliver 770 commercial aircraft, about 30 less than it had anticipated so far.

The cutbacks have severe financial implications for the company. Airbus now expects an adjusted operating profit of €5.5 billion ($5.8 billion), down from €6.5-7 billion.

For airlines and lessors, the latest admissions mean more delays for hundreds of aircraft over the next several years. Customers have already been complaining about receiving A320neo family aircraft routinely several months late. The continued and now aggravated scarcity of supply will likely support the already high lease rates further and could slow down retirements even more when many airlines are already operating aging aircraft longer than expected.

The delay also means that Airbus cannot grow its share in the single aisle market vis-à-vis Boeing as fast as planned in the coming three years.