Airbus says it has 60 jets awaiting engines, now including from Pratt & Whitney

Airbus CEO Guillaume Faury disclosed that 60 aircraft are currently awaiting engine deliveries, with delays now extending to Pratt & Whitney in addition to existing issues with CFM, indicating broadening supply chain challenges. Despite this, Faury reiterated Airbus's commitment to its 2025 target of 820 jet deliveries, citing agreements with engine manufacturers to secure supply. Concurrently, the company is advancing plans for a second assembly line in China by late 2025 and remains committed to the Franco-German-Spanish fighter project.

Analysis

Airbus is experiencing intensified production bottlenecks, with the number of completed airframes lacking engines rising to 60. Critically, the issue has expanded from solely CFM (a GE/Safran venture) to now include Pratt & Whitney (RTX), signaling a systemic supply chain constraint across the engine manufacturing duopoly rather than an isolated supplier problem. Despite these significant headwinds, CEO Guillaume Faury has reaffirmed the company's ambitious 2025 delivery target of 820 jets, explicitly citing an agreement with engine suppliers to secure deliveries. The credibility and execution of this agreement are now central to Airbus's near-term financial outlook. In parallel, the company is advancing long-term strategic goals, such as the opening of a second assembly line in China by late 2025 and maintaining its role in the Franco-German-Spanish fighter project, indicating management's focus on future growth despite current operational challenges.

Key Decisions for Investors

• Investors should treat Airbus's reaffirmed 2025 delivery target of 820 jets with caution, as its achievement is now highly dependent on the execution of a new, unproven supply agreement with both major engine manufacturers.
• The negative sentiment for RTX and GE is warranted; the broadening of these delays highlights operational pressures that could impact their own revenue recognition and margins, meriting closer scrutiny of their production guidance.
• While near-term focus is on the engine bottleneck, the strategic commitment to a second Chinese assembly line by 2025 should be factored into long-term models as a significant potential growth driver, albeit one that increases geopolitical risk exposure.