Airbus CEO: It has an agreement with engine makers to support end-year aircraft delivery target

Airbus CEO: It has an agreement with engine makers to support end-year aircraft delivery target

Airbus SE, the world's leading aircraft manufacturer, has confirmed an agreement with engine makers to support its end-year aircraft delivery target. The move comes as Airbus continues to grapple with supply chain challenges, particularly in engine production, which have delayed deliveries of its best-selling A320neo jets [1].

Airbus reported a cash outflow of €1.6 billion ($1.8 billion) in the first half of 2025, with deliveries of 306 planes being the lowest since 2022. The company's CEO, Guillaume Faury, acknowledged that while Airbus is producing aircraft in line with its plans, persistent engine supply issues on the A320 have led to a backlog of deliveries [1].

The agreement with engine makers aims to address these issues and ensure that Airbus meets its target of 820 aircraft deliveries by the end of the year. Faury stated that while global volatility and parts shortages have made it more difficult to meet delivery targets, the recent agreement with engine manufacturers is a significant step forward [1].

The aerospace industry has been lobbying for a return to zero-tariffs on civil aircraft, and Airbus has welcomed the recent agreement between the US and the European Union to revert to this regime. This development is expected to ease supply chain pressures and support the industry's recovery [1].

Despite the challenges, Airbus maintained its guidance for the full year, including adjusted operating profit of about €7 billion and free cash flow before customer financing of about €4.5 billion [1]. The company also announced plans to raise production of its A330neo widebody model in 2029 to 5 a month from 4 currently, to meet demand for more fuel-efficient, long-haul jets [1].

Hexcel, a leading supplier of advanced composite materials, is seen as a beneficiary of this agreement, as it relies heavily on the production of aircraft by Airbus and Boeing. While Hexcel has faced challenges due to production shortfalls, the improving commercial aerospace supply chain and long-term growth prospects for the industry suggest that Hexcel could see increased sales and margins in the coming years [2].

In summary, Airbus's agreement with engine makers is a significant step towards meeting its end-year delivery target and addressing the supply chain challenges it has been facing. The aerospace industry's recovery is expected to benefit companies like Hexcel, which rely on the production of aircraft.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-30/airbus-suffers-cash-outflow-as-engine-woes-hold-up-deliveries
[2] https://www.nasdaq.com/articles/prediction-buying-hexcel-today-could-set-you-life
[3] https://www.investing.com/news/earnings/airbus-q2-revenue-tops-estimates-on-strong-defence-and-space-performance-4160704