Airbus Secures Major Orders for A350 and A320neo Families as Go First Faces Challenges

Airbus Secures Major Orders for A350 and A320neo Families Amid Supply Chain Challenges

Airbus has announced substantial new orders for its A350 and A320neo-family aircraft, despite ongoing supply chain disruptions that continue to impact production and delivery schedules. According to the manufacturer’s latest backlog report, an undisclosed customer placed an order on March 6 for 12 A350 aircraft, evenly divided between the A350-1000 and A350-900 variants, alongside 30 A320neo-family jets. Additionally, Airbus recorded a separate undisclosed order for 40 A321neos.

The March order activity also included significant commitments from aircraft lessors, with BOC Aviation ordering 70 single-aisle jets and Jackson Square Aviation adding 50 more to its portfolio. Taiwanese carrier EVA Air further contributed to the robust order book by adding six A350-1000s and three A321neos to its fleet expansion plans, marking a particularly active month for Airbus.

Impact of Go First Cancellations and Production Outlook

Despite this strong order momentum, Airbus’s backlog figures reflected the removal of 72 A320neo orders previously attributed to Indian carrier Go First, which ceased operations nearly two years ago. The cancellation of Go First’s outstanding orders highlights the volatility within the global aviation market and has necessitated adjustments to Airbus’s net order calculations. After accounting for these changes, Airbus reported net orders totaling 204 aircraft for the first quarter of 2024.

In terms of deliveries, Airbus completed 136 aircraft in the first quarter, a slight decline from 142 deliveries during the same period last year. The company attributes this decrease primarily to persistent supply chain challenges, particularly delays in engine deliveries. While acknowledging these obstacles, Airbus remains optimistic about its production outlook for the remainder of the year. The manufacturer is actively collaborating with suppliers to mitigate delays and is exploring alternative solutions to enhance assembly line efficiency.

Looking forward, Airbus aims to significantly increase production of the A320neo family, targeting a monthly output rate of 75 aircraft by 2027. This ambitious goal reflects the company’s confidence in sustained demand for single-aisle jets and its commitment to fulfilling customer requirements despite ongoing industry headwinds.

Airbus’s recent surge in orders and its proactive approach to managing supply chain issues may prompt competitors to reevaluate their own order strategies amid shifting market dynamics. The company’s emphasis on maintaining quality and delivery schedules underscores its strategic resilience and adaptability in a complex aerospace environment.