Summary
- Airbus is facing supply chain and labor issues, hindering its ability to deliver aircraft on time.
- The corporate reitarated its commitment to deliver 800 aircraft in 2024.
- Similarly, its biggest competitor, Boeing, can also be struggling to deliver aircraft in a timely manner.
Industry sources have indicated that Airbus and its airline customers have been facing delivery delays as part and labor-related problems proceed negatively influencing the manufacturer’s ability to supply enough aircraft per thirty days. The problems come because the duoply, which incorporates Airbus and Boeing, is struggling to fulfill the demand for brand new aircraft.
Worsening shortages
Based on a report by Reuters, which cited sources aware of the matter, Airbus’ deliveries are lagging by months, with the assembly of multiple aircraft being delayed within the second half of the 12 months as well. Consequently, airlines which are already coping with aircraft delivery delays could see the situation worsen within the near term as Airbus continues to struggle to take care of supply and labor challenges.
Photo: Airbus
Based on the manufacturer’s orders and deliveries filings, it delivered 140 aircraft in Q1 2024, adding an additional 60 aircraft to that number in April. Split between aircraft programs, the European plane maker handed over one Airbus A220-100, 13 A220-300, 76 A320neo, 91 A321neo, eight A330-900, ten A350-900, and three A350-1000 year-to-date (YTD). As compared, throughout the first 4 months of 2023, Airbus had delivered 181 aircraft: 16 A220-300, three A319neo, 62 A320neo, 83 A321neo, one A330 MRTT, based on the A330, seven A330-900, and nine A350-900s.
Airbus Delivers 61 Jets And Books 57 Orders In April
With a goal to deliver 800 aircraft in 2024, Airbus needs to maintain increasing deliveries every month, and it has an unlimited backlog to pick from.
Complex operating environment
Nevertheless, an Airbus spokesperson referred Reuters to the manufacturer’s Q1 2024 results when the plane maker reiterated its guidance that it might deliver 800 aircraft in 2024. In 2023, the Toulouse, France-based company delivered 735 aircraft. When the manufacturer announced its Q1 results, Guillaume Faury, the chief executive officer (CEO) of Airbus, stated that the corporate had managed to shut out the quarter despite an operating environment that showed no signs of improvement.
Photo: Skycolors | Shutterstock
The CEO added that geopolitical and provide tensions continued throughout the quarter. Still, Faury said that despite the operating environment, the corporate had a solid order intake throughout the quarter, with strong momentum for widebody aircraft justifying Airbus’ decision to ramp up the production of the A350 to 12 per thirty days by 2028.
Ch-aviation data showed that in May, Airbus has to date delivered 38 aircraft. Nonetheless, the information may not be up-to-date and will change because the manufacturer publishes its monthly orders and deliveries update for the month of May in June, where the complete extent of its monthly deliveries can be visible.
Airbus Q1 Revenues And Profits Up As A350 Demand Ramps Up
Airbus is off to a profitable start in 2024 and is again trying to lift monthly production rates for the A320 family and the A350 widebody.
Missed opportunities
Previously, Airbus had indicated that it plans to construct 14 A220, 75 A320neo family, 4 A330neo, and ten A350, which later increased to 12 A350 aircraft per thirty days as its current backlog continues to underpin its decision to extend its production rates. As of April 31, its order book totaled 24,017 aircraft, while it had delivered 15,400 aircraft, leading to a backlog of 8,617 jets, starting from the A220-100 to the A350-1000.
Like Boeing’s, Airbus’s largest market is throughout the larger narrowbody segment, where Airbus produces the A319neo, A320neo, and A321neo aircraft. The manufacturer’s backlog for the trio numbers 45, 2,134, and 4,992, respectively. As compared, the entire Boeing 737 MAX family backlog, starting from the 737 MAX 7 to the 737 MAX 10, totals 4,340 aircraft, with the most important portion belonging to the 737 MAX 8 and MAX 8-200, which combined have 3,123 unfilled orders as of April 31.
Nonetheless, Boeing has struggled to deliver aircraft on time. The external supply chain aspects have been exacerbated by the US-based company’s internal quality struggles, which have culminated within the Alaska Airlines Boeing 737 MAX 9 mid-air door plug blowout and the following fallout.
Photo: Airbus
Airlines, which have been desperate for aircraft to reply to the still-strong travel demand, needed to face mounting delivery delays from Boeing, including struggles to certify the 737 MAX 7 and 737 MAX 10. For instance, United Airlines has sought out and secured leases for A321neo aircraft, replacing the 737 MAX 10s that it previously had in its backlog.
United Airlines Is Close To Signing Lease Agreements For Airbus A321neos
The airline is reportedly looking to amass these planes to compensate for not taking the Boeing 737 MAX 10.
Airbus’ massive backlog and production struggles haven’t allowed the corporate to leap on the chance to lure in loyal Boeing customers, especially within the narrowbody segment. At the identical time, Faury said in March that Boeing’s troubles are bad for the industry as a complete, adding that each firms are working in a sector where quality and safety are a top priority.
Photo: Skycolors | Shutterstock
Meanwhile, throughout the company’s annual conference in February, Faury, answering an issue from the press, expressed that airlines’ increasing interest within the A320neo family aircraft was not recent, adding that the A320 family has had a market share in bookings higher than 50% for several years in a row.
Based on the chief, all airlines worldwide are taking a look at each products inside this segment, with a variety of interest across the board for the A320neo family. The family’s most up-to-date orders include Saudi Arabia-based SAUDIA and its low-cost subsidiary, flyadeal, ordering 105 A320neo family aircraft, including 93 A321neos.
Saudia Group Orders 105 Airbus A320neo-Family Planes To Support Expansion
The airline group marks the most important aircraft order in its history.