Airbus's Strategic Expansion in the US and Implications for Its 2025 Delivery Targets

Airbus's aggressive expansion in the U.S. aerospace market has positioned it as a formidable competitor to Boeing, even as both firms navigate supply chain bottlenecks and geopolitical shifts. Central to this strategy is the opening of a second A320neo-family production line in Mobile, Alabama, in October 2025, a move that underscores Airbus's commitment to increasing output and solidifying its foothold in the American market. Coupled with strategic investments in satellite technology and a favorable trade environment, these initiatives suggest Airbus is well-positioned to outperform Boeing in 2025 delivery targets.

Production Expansion: A Catalyst for Growth

Airbus's second A320neo assembly line in Mobile, Alabama, is a cornerstone of its 2025 strategy. By October 2025, the facility will bring the company's total aircraft assembly lines to 13, with the Mobile site now accounting for two of them Thales, Airbus, Leonardo eye initial agreement on 10 bln-euro satellite JV^[3]. This expansion is critical for achieving Airbus's long-term goal of producing 75 A320neo-family aircraft per month by 2027 Thales, Airbus, Leonardo eye initial agreement on 10 bln-euro satellite JV^[3]. As of August 2025, Airbus had delivered 434 aircraft, significantly outpacing Boeing's 385 deliveries in the same period . CEO Guillaume Faury has reaffirmed the company's 2025 target of 820 deliveries, despite ongoing engine supply delays from CFM International and Pratt & Whitney, which have forced Airbus to assemble “gliders” (aircraft without engines) . The second line in Mobile is expected to alleviate these constraints by boosting production flexibility and reducing bottlenecks.

Navigating Supply Chain Challenges

Engine shortages remain a persistent challenge. Delays from suppliers like CFM International—linked to quality issues and worker strikes—have constrained Airbus's ability to fully utilize its production capacity . However, the company has adopted a pragmatic approach: prioritizing engine deliveries in the latter half of 2025 and maintaining a steady delivery rate by leveraging its global supply chain . This strategy has allowed Airbus to maintain a lead over Boeing, which has yet to publish a 2025 delivery target . The U.S.-EU trade agreement, which removes tariffs on civil aircraft, further insulates Airbus from potential financial headwinds, enhancing its competitive edge in the American market .

Strategic Diversification: Project Bromo and Satellite Ambitions

While Airbus's Pleiades mission support is not explicitly detailed in recent reports, the company's broader satellite ambitions are evident. Airbus is spearheading “Project Bromo,” a 10-billion-euro joint venture with Thales and Leonardo to counter U.S. and Chinese satellite dominance, including Elon Musk's Starlink . This initiative, though still in negotiation, reflects Airbus's intent to diversify beyond commercial aviation and secure a leadership role in the high-growth satellite sector. By aligning with European partners, Airbus aims to create a sovereign aerospace capability that complements its aircraft business, potentially opening new revenue streams and reducing reliance on traditional markets.

Trade Policy and Market Stability

The U.S.-EU trade agreement, finalized in late 2024, has removed tariffs on civil aircraft, providing Airbus with a stable operating environment in the U.S. . This development is particularly significant given Boeing's recent struggles with production delays and financial restructuring. The absence of tariffs reduces Airbus's cost burden and allows it to price competitively, further strengthening its position in a market where cost efficiency is paramount.

Implications for 2025 and Beyond

Airbus's dual focus on production expansion and strategic diversification positions it to outperform Boeing in 2025. The second Mobile assembly line will directly support its 820-delivery target, while Project Bromo and the trade agreement provide long-term advantages in both aviation and satellite markets. Investors should monitor engine supplier performance in the fourth quarter, as timely deliveries will be critical to meeting the 2025 goal. However, Airbus's proactive approach—combining operational resilience with strategic foresight—suggests it is well-prepared to navigate near-term challenges and emerge stronger in the post-tariff aerospace landscape.