Airbus (EADSY, Financial) is encountering increasing difficulties in meeting its annual delivery goals. Sources indicate that the company delivered approximately 50 aircraft in September, suggesting that it might only reach about 500 deliveries for the year, significantly short of the revised target of 770, a reduction from the original 800 due to engine shortages and supply chain issues.
The company also deferred its mid-term production targets by a year to 2027. Although delivery rates typically accelerate towards the end of the year, the current shortfall implies that Airbus will need to significantly ramp up its delivery pace in the last quarter. This challenge underscores the difficulty Airbus faces in achieving its annual targets under current conditions.
Analysts, like UBS's Ian Douglas-Pennant, suggest that Airbus might have to revise down its annual forecasts when reporting third-quarter earnings, due to persistent supply chain disruptions that have lingered since the pandemic's impact on the industry. This sluggish delivery rate is putting pressure on airlines, which are unable to receive new aircraft as expected, forcing them to extend the use of older models or reduce flight services.
