Airbus Eyes Year-End Delivery Surge Amid Tight Engine Supplies

4 days ago Editor

Airbus CEO Guillaume Faury remains cautiously optimistic about overcoming engine supply challenges, as the company races to meet its 2024 delivery goals. Negotiations with CFM International have improved, but supply chain hurdles continue to pose risks.

Airbus CEO Guillaume Faury expressed cautious optimism about resolving ongoing engine supply challenges that have impacted jet deliveries this year. Speaking at an industry event in Brussels, Faury noted that CFM International, a joint venture between GE Aerospace and Safran, should be able to meet Airbus’s immediate engine needs, though the situation remains “very tight.”

Faury acknowledged the complexity of the supply chain, exacerbated by recent U.S. hurricane damage and persistent industrial hurdles. Despite these setbacks, he highlighted improved negotiations and a more collaborative approach with CFM. “They are serving us reasonably well given those circumstances,” Faury remarked.

Airbus aims to deliver around 200 jets in the remaining months of 2024 to meet its annual goal of 770 deliveries. The planemaker has delivered 559 jets through October, leaving analysts skeptical of its ability to meet the target. While flexibility in target wording allows deliveries as low as 750, any significant shortfall would reflect broader industry challenges.

CFM, a key engine supplier for Airbus’s A320neo family and Boeing’s 737 MAX, has faced pressure balancing engine production with global repair demands. This tension previously prompted Airbus to lower its 2024 delivery target from 800 to “around 770.” However, Faury’s recent statements signal improved relations and a hopeful outlook for the year-end surge in deliveries.

Industry observers warn that while engine supplies may stabilize, other components like seats and landing gear could still disrupt Airbus’s ambitious plans.