Airbus cautiously optimistic on 2025 delivery target despite delays

Airbus remains cautiously optimistic about achieving its 2025 target of 820 aircraft deliveries despite persistent supply chain constraints, particularly delays in CFM engine deliveries for single-aisle aircraft and cabin components for wide-body jets. CEO Christian Scherer acknowledged improvements in overall supply chains but noted that nearly 40 completed airframes are awaiting engines. While deliveries have recently declined year-over-year, Airbus maintains its guidance, anticipating increased engine output in the coming months.

Analysis

Airbus maintains its 2025 aircraft delivery target of 820 units, with CEO of planemaking Christian Scherer expressing cautious hope despite ongoing supply chain challenges that have resulted in nearly 40 completed airframes awaiting engines. While overall supply chains have reportedly "improved significantly," persistent bottlenecks include delays in CFM engine deliveries for single-aisle aircraft and cabin interior components, now including lavatories, for wide-body jets. Scherer acknowledged recent monthly delivery declines compared to last year but cautioned against extrapolating from these figures, reiterating that Airbus has not changed its guidance for the current year, anticipating that required engines will be received by year-end. CFM engine output is described as gradually increasing, though currently "a little behind the curve." This situation highlights a critical dependency on resolving specific supplier issues to meet both near-term and the 2025 production ambitions, reflecting the mixed sentiment (0.0 score) and cautious tone surrounding the company's operational execution.

Key Decisions for Investors

• Investors should closely monitor Airbus's monthly delivery figures and specific updates on the resolution of CFM engine and cabin component shortages, as these are pivotal for achieving the 820 aircraft delivery target for 2025 and current year guidance.
• Given the persistent supply chain issues despite maintained guidance, factor in potential for near-term stock volatility and the risk that delivery schedules could face pressure if component supplies do not align with company expectations by year-end.
• Evaluate Airbus's progress in mitigating these identified bottlenecks relative to broader aerospace industry trends and competitor performance in supply chain management, as this will be a key indicator of its ability to capitalize on demand.