Airbus has cut back its target of producing 75 A320neo family aircraft per month in 2026 and has reduced its delivery guidance for 2024 due to renewed supply chain constraints. The company now expects to reach rate 75 in 2027, one year later than planned, and aims to deliver 770 commercial aircraft in 2024, 30 less than it had anticipated so far. The cutbacks have severe financial implications for Airbus, with an adjusted operating profit of €5.5 billion ($5.8 billion), down from €6.5-7 billion.
Airbus’s decision reflects “specific supply chain challenges in a degraded operating environment,” mainly in engines, aerostructures, and cabin equipment. The company also conducted technical reviews of all space programs and identified further commercial and technical challenges. As a result, it recorded €0.9 billion in charges in the first half of the year. Airbus will disclose its second quarter results on July 30.
The supply chain remains “very constrained,” with many areas of friction, and the market would take more than that today. Deliveries of Pratt & Whitney PW1100G engines have been constrained, and CFM International has also had challenges in ramping up production. Airbus did not reveal where the shortages in aerostructures lie, but issues in the cabin supply chain have worsened recently, with delays in deliveries and certification of seats pushing back aircraft handovers.
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