Airbus Monthly Deliveries Fall, Piling Pressure on Annual Target Amid Persistent Production Woes

Airbus, the European aircraft manufacturer, is facing mounting pressure to meet its annual delivery targets as monthly deliveries continue to decline. The company, which had initially set a target of 800 aircraft deliveries for 2024, later revised it to 770 due to supply chain disruptions. However, the latest figures suggest that Airbus may struggle to reach even this revised target.

In September, Airbus delivered only 50 aircraft, bringing the year-to-date total to 497. To meet the 770 target, the company needs to deliver 273 aircraft in the last quarter of the year. While Airbus has historically seen a surge in deliveries during the final quarter, the current pace suggests that the company may fall short of its goal.

Supply chain disruptions, particularly engine shortages, have significantly impacted Airbus' delivery targets. The company has faced persistent challenges in securing sufficient engines for its aircraft, leading to delays in production and delivery. In addition, production ramp-up challenges, such as those faced by the A320 Family, have contributed to the delivery delays.

Airbus' financial performance has been affected by these persistent production issues. The company has recorded charges of around €0.9 billion on certain telecommunications, navigation, and observation space programs. Additionally, the company has deferred its mid-term production targets by a year to 2027.

To address its production challenges and meet annual delivery targets, Airbus is implementing strategic adjustments. The company is updating its 2024 guidance to reflect the current challenges and is working to ramp up production towards a rate of 75 A320 Family aircraft per month, which is now expected to be reached in 2027.

The decline in monthly deliveries has put pressure on Airbus' financial performance and investor confidence. The company is facing a significant shortfall in its delivery targets, which could impact its market position in the short and long term. As the company works to address its production challenges, it is crucial for investors to monitor the progress and assess the potential impact on the company's financial performance.