Airbus Adjusts 2024 Forecasts: Amid Supply Chain Challenges and Production Goals

Airbus has revised down its total delivery target for this year from 800 to 770 aircraft and postponed the deadline for achieving a production rate of 75 narrow-body aircraft per month from 2026 to 2027, according to a statement released this Monday.

The European aerospace manufacturer provided a market update to report on new developments related to its space activities and commercial aircraft business, which have prompted the company to adjust its forecasts for 2024."In the commercial aircraft sector, Airbus is grappling with persistent specific challenges in the supply chain, primarily related to engines, aerostructures, and cabin equipment. The company now intends to deliver around 770 commercial aircraft in 2024 and continues to ramp up towards a rate of 75 A320 Family aircraft per month, now expected by 2027. Consequently, Airbus is updating its forecasts for 2024," stated Airbus in their official release.

"In the first half of 2024, the Space Systems management team conducted an extensive technical review of all programs, identifying additional commercial and technical challenges. Based on this assessment, the company has decided to record charges of approximately 900 million euros in the first half of 2024. These charges are mainly related to updated assumptions on schedules, workload, procurement, risks, and costs throughout the lifecycle of certain telecommunications, navigation, and observation programs," Airbus added.

As the basis for its updated guidance for 2024, Airbus assumes no further disruptions to the global economy, air traffic, supply chain, internal operations, and its ability to deliver products and services.Logistics and planning play a crucial role in modern industrialized societies, ensuring efficient supply chains and operational resilience. These elements are vital for companies like Airbus to navigate challenges and meet ambitious production targets amidst dynamic global conditions.

Source: Bloomberg