Airbus Warns Of Aircraft Delivery Delays Through 2026: Report

Author: Shivani Kumaresan | June 27, 2024 09:14am

Airbus SE (OTC:EADSY) is warning airlines of potential delays in aircraft deliveries over the next two years due to ongoing supply-chain issues.

The world’s largest plane maker has informed customers that deliveries scheduled for 2025 and 2026 might be pushed back by several months, according to a report from Bloomberg.

This week, Airbus acknowledged it won’t meet its 2024 delivery targets due to shortages of components like engines, structural parts, and cabin interiors.

Consequently, the plan to increase the production rate of the A320 model to 75 units per month has been delayed by a year. CEO Guillaume Faury cited persistent supply-chain issues exacerbated by geopolitical tensions.

Following the news, Airbus shares fell by 3.7% in Paris, contributing to a 6.5% decline for the year. The plane maker, based in Toulouse, France, is nearly sold out of its A320 family aircraft until the decade’s end, with its A330 and A350 models also in high demand due to a surge in travel.

Also Read: Boeing And Airbus Under FAA Investigation For Authenticity Of Titanium Parts In Some Jets: Report

The new delays extending into 2026 surpass earlier reported issues. Faury has warned that supply-chain constraints could persist for the next two to three years.

Airbus has revised its earnings and cash flow guidance downward for this year, partly due to charges at its space unit.

Airlines, facing delays in new aircraft deliveries, are forced to keep older models in service longer, increasing costs due to higher maintenance and fuel consumption.

Price Action: EADSY shares are down 0.29% to $34.90 in premarket trading Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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