Latest Updates on Airbus A320neo Production Delays and Its Implications
Troubles Ahead for Airbus
- Dip in April Production: Airbus barely managed to churn out around 50 jets in April, sparingly meeting the 55 units target [source], exhibiting a notable slowdown compared to March.
- Engine Conundrum: As usual, the issue of engine shortages – particularly with CFM International – has been hammering the production of the high-demand A320neo family [source].
- Potential Tariff Threats: Although tariffs aren’t the main culprits yet, they pose a possible future problem [source].
Airbus' Expansion Strategies
- Doubling Down on Mobile: Airbus is gearing up to initiate a second A320neo production line in Mobile, Alabama, before Q3 of 2025 [sources 3, 5]. The idea is to eventually attain a production rate of 75 aircraft per month by 2027.
Consequences for Deliveries
- Delivery Ambitions: Airbus targets delivering about 840 planes in 2025, but achieving pre-pandemic production levels won't happen until 2026 [source].
- Cautious Production Goals: Despite ongoing challenges, Airbus remains determined to boost the A320neo production rates, but careful due to continuous supply chain woes and other external hurdles [sources 1, 2].
Looking Ahead
- Growth Horizons: The potential to augment production rates and achieve delivery objectives depends on untangling supply chain kinks and navigating external pressures like trade disputes [sources 1, 4].
- Engine Supply Alleviation: CFM International aims to eliminate engine shortages by the year-end 2025, which could stabilize and escalate deliveries [source].
Jet deliveries from Airbus are reportedly decelerating in April due to a shortage of engines.
All things considered, Airbus encounters difficulties in matching its A320neo production goals due to persistent supply chain issues and external obstacles, yet it continues to aim for growth by addressing restrictions and working on strategic expansions.
- The ongoing engine shortages with CFM International have been a persistent issue in the production of Airbus' high-demand A320neo family, according to several reports.
- In an effort to increase production, Airbus plans to establish a second A320neo production line in Mobile, Alabama before Q3 of 2025, with the goal of reaching a production rate of 75 aircraft per month by 2027.
- Despite these expansion strategies, Airbus' delivery ambitions for 2025 will likely not meet pre-pandemic production levels until 2026, due to ongoing challenges with the supply chain and external hurdles.
- In the aerospace industry, Airbus' OTCPK continues to strive for growth despite facing difficulties in matching its A320neo production goals, as the company works to untangle supply chain kinks and navigate external pressures like trade disputes.
