Airbus Faces Supply Chain Headwinds in April Deliveries: A Closer Look at Risks and Opportunities

Airbus delivered 59 commercial aircraft in April 2025, marking a 17% month-over-month decline from March’s 71 deliveries. While this dip aligns with seasonal expectations and the company’s Q2 delivery pacing strategy, it underscores persistent challenges in supply chain management and trade-related uncertainties. For investors, the numbers reveal both resilience and vulnerabilities in Airbus’s ability to meet its ambitious 2025 delivery target of 820 aircraft—a 7% increase over 2024.

Breaking Down the Deliveries

Airbus’s April performance was driven by its workhorse A320neo family, which accounted for 48 deliveries, including 28 A321neos. The A220 program added 6 units, while widebody deliveries (A350 and A330neo) totaled 5. However, the production gap between narrowbody and widebody aircraft highlights uneven progress across programs.

Supply Chain Bottlenecks: The Elephant in the Hangar

The primary culprit for the slowdown is supply chain disruption, particularly from key suppliers like Spirit AeroSystems, which manufactures critical components for the A350 and A220 programs. These delays have constrained A320neo production to just 40 aircraft per month, far below the 50/month target. Meanwhile, the A350 program—critical for high-margin widebody sales—delivered only 3 units in April despite producing 7, as some aircraft await final assembly or certification.

The ripple effects are clear:
- A320neo production lags behind targets, limiting delivery growth.
- A350 output remains capped at 6 per month in 2025, versus an earlier goal of 10/month by 2026.
- A220 production struggles to exceed 6–8/month, well below the 14/month target for 2026.

Trade Tensions: A Cloud on the Horizon

While Airbus’s April results were not directly tied to U.S.-China trade disputes—unlike Boeing’s rerouted 737 MAXs—the broader geopolitical climate remains a risk. Tariffs, export controls, and regional trade policies could further strain supplier relationships, particularly in Asia, where many critical components originate.

Backlog and Backloaded Expectations

Airbus enters Q2 with a robust order backlog of 8,726 aircraft, providing long-term visibility. However, the company’s ability to fulfill these orders hinges on resolving supply chain bottlenecks. Management has hinted at a “backloaded” delivery profile, with production ramp-ups expected in the latter half of 2025.

Investment Implications

For investors, Airbus’s April data presents a mixed picture:
- Strengths:
- A220 and A320neo remain cash cows, with strong demand from airlines.
- The backlog offers a multi-year growth runway.
- Airbus is on track to meet its 820 delivery target if Q2/Q3 ramp-ups materialize.

• Risks:
• Supply chain delays could push A320neo production targets to 2027 or later, hurting margins.
• The A350’s delayed 12-per-month production goal (now pushed to 2028) limits high-margin revenue growth.
• Trade tensions may exacerbate component shortages.

Conclusion: A Work in Progress, but Progress Remains Fragile

Airbus’s April deliveries reflect a company navigating operational turbulence while clinging to its growth trajectory. With 59 deliveries in April and 136 in Q1, the firm is 68% of the way to its 2025 target, assuming steady improvements. However, the path to 820 deliveries—and beyond—depends on:
1. Supply chain stabilization: Resolving bottlenecks with suppliers like Spirit AeroSystems.
2. Production ramp-up credibility: Meeting incremental targets for A320neo (75/month by 2027) and A350.
3. Trade policy stability: Avoiding further disruptions from geopolitical conflicts.

For now, Airbus’s 8,726-aircraft backlog and dominance in narrowbody markets position it as a long-term winner in commercial aviation. Yet, investors must remain cautious: the gap between Airbus’s stated targets and current realities—exemplified by its April dip—suggests patience is required. Until supply chains normalize and production rates consistently hit benchmarks, Airbus’s stock (EAD.PA) will trade on hope as much as fundamentals.

In short, Airbus isn’t in crisis, but its April performance reinforces that the road to sustained growth remains bumpy—and investors should prepare for more turbulence ahead.