Airbus Delivery Delays Jeopardize 2024 Aircraft Delivery Goals

Airbus is facing growing concerns over its ability to meet its revised 2023 delivery target of 770 aircraft, following slower-than-expected deliveries in September. Industry analysts noted that the European aerospace giant delivered around 30 aircraft by mid-September, lagging behind last year’s numbers.

In July, Airbus reduced its full-year target from 800 to 770 deliveries in 2024, citing supply chain disruptions, including delays in LEAP engine deliveries from Safran and GE Aerospace, as well as shortages of landing gear and other critical components.

Rob Morris, head of consultancy at Cirium Ascend, noted that Airbus has been closely trailing its 2023 cumulative delivery targets all year, raising concerns about whether the company can achieve the 770 target. If September’s delivery rate continues, Airbus may fall below its nine-month total from last year.

Airbus has been producing about 50 A320neo jets monthly, a figure that has remained flat despite efforts to ramp up production. The company’s long-term goal of producing 75 jets monthly by 2027 faces increasing pressure, with analysts suggesting further risk to the downside.

In response, Airbus launched a cost-cutting initiative, LEAD!, to address rising production costs and preserve cash flow. This effort is aimed at safeguarding deliveries for 2024 while addressing internal inefficiencies that have hindered growth.

Despite these challenges, Airbus is known for pulling off fourth-quarter surprises, but uncertainty remains as supply chain issues persist.

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