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Airbus Faces Engine Delays Amid Record Order Backlog

Airbus Faces Engine Delays Amid Record Order Backlog
Expansion Efforts and Production Challenges
Airbus recently inaugurated a new A320neo final assembly line in Toulouse, repurposing the expansive hall previously dedicated to the A380 program. This development marks the addition of a tenth global assembly site, reflecting Airbus’s ambitious strategy to increase monthly production of its best-selling single-aisle aircraft to 75 units by the end of 2027. Despite these efforts, the company continues to grapple with significant supply-chain disruptions, most notably a shortage of Pratt & Whitney engines. CEO Guillaume Faury has identified this bottleneck as a primary obstacle impeding delivery schedules.
The tension between soaring demand and constrained supply was clearly illustrated in May’s delivery statistics. Airbus delivered 81 aircraft to 45 customers, representing a 59% increase compared to the same period last year. This surge was largely driven by the resumption of shipments to Chinese carriers following the resolution of an administrative backlog. Year-to-date deliveries have reached 262, slightly surpassing Boeing’s 250. Nevertheless, Airbus’s ambitious full-year target of approximately 870 deliveries—underpinned by a forecasted adjusted EBIT of €7.5 billion and free cash flow of €4.5 billion—remains dependent on overcoming the engine supply challenges.
Backlog and Market Impact
Airbus’s order backlog has expanded to an unprecedented 9,247 aircraft as of the end of May, equating to more than a decade of production at current output levels. This extraordinary pipeline is the driving force behind the accelerated expansion of assembly capacity. Faury acknowledged the immense pressure created by this record backlog but noted that ongoing engine delays have repeatedly forced the company to defer its goal of achieving a 75-aircraft monthly production rate.
Compounding these difficulties, Airbus has recently informed customers of further delivery postponements affecting both A350 and A320neo models scheduled for 2027 and 2028. The announcement unsettled markets, with Airbus shares declining 2.9% in early European trading following reports of A350 delivery setbacks. Industry leaders, including United Airlines CEO Scott Kirby, have expressed concern over the persistent engine shortages, describing them as a significant constraint on the sector. These issues have also influenced customer preferences; for instance, Emirates has opted for the Boeing 777X over the Airbus A350-1000, citing apprehensions about engine durability.
Additional production complications have arisen, such as quality control problems with A320neo fuselage panels. Airbus has committed to restoring the delivery schedule to normal by the end of June, although it has yet to confirm whether this timeline will be met.
Future Prospects and Diversification
Looking ahead, Airbus’s A350F freighter program remains on track, with a maiden flight anticipated in the third quarter of 2026 and first deliveries planned for the latter half of 2027. The freighter variant has secured orders for 101 units from 14 customers, with certification processes underway in both Europe and the United States.
Meanwhile, key customers continue to advance their fleet renewal plans. KLM Royal Dutch Airlines will name its forthcoming A350-900 aircraft after iconic Dutch artworks, beginning with “Die Nachtwache” (The Night Watch) in homage to Rembrandt. The first of these aircraft is currently being assembled and painted in Toulouse, with entry into service expected in September. However, certification issues with new business class seats mean the initial jets will launch without the upgraded cabin configuration.
Beyond its commercial aviation activities, Airbus’s helicopter division has recently secured new contracts, including an order from Romania’s interior ministry for twelve multi-role helicopters intended for disaster relief and air rescue operations.

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