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Airbus Delivery Delays Linked to Supply Chain Issues

Airbus Delivery Delays Highlight Persistent Supply Chain Challenges
Airbus, Europe’s leading aerospace manufacturer, is grappling with significant delivery delays amid ongoing supply chain disruptions and intensifying competition. Analysts at MWB Research have downgraded their outlook for the company, citing these operational setbacks alongside mounting financial pressures within the aviation sector. The challenges facing Airbus underscore broader vulnerabilities in the global aerospace industry.
Production Shortfalls and Supply Chain Bottlenecks
In October, Airbus delivered only 77 aircraft, falling well short of the 104 planes per month required to meet its annual target of approximately 820 deliveries. Over the first ten months of 2025, the company has completed 585 deliveries, leaving a substantial gap of 235 aircraft to fulfill its year-end goal. Compounding the issue, around 30 jets have been assembled but remain grounded, awaiting engine shipments. This backlog highlights Airbus’s ongoing exposure to supply chain constraints, particularly in critical components such as engines.
The ripple effects of these delays extend beyond Airbus itself, impacting the broader airline industry. A joint study by the International Air Transport Association (IATA) and consulting firm Oliver Wyman estimates that supply chain disruptions could cost airlines more than $11 billion in 2025. The financial burden arises from several factors, including increased fuel consumption due to the continued use of older, less efficient aircraft, higher maintenance costs, elevated engine leasing fees linked to extended maintenance cycles, and the expenses associated with holding surplus inventory as airlines attempt to mitigate uncertainty.
Competitive Pressures and Revised Industry Forecasts
Airbus’s difficulties are further exacerbated by a slowdown in new orders and growing competition from China’s COMAC, particularly in the single-aisle aircraft segment—a key market for the manufacturer. This competitive dynamic has prompted analysts to reassess Airbus’s long-term prospects. MWB Research has reduced its price target for Airbus shares to 170 euros and maintained a ‘sell’ rating, warning that the company is unlikely to meet its ambitious delivery targets for 2025.
Industry-wide expectations are also being adjusted. Earlier forecasts anticipated annual production exceeding 1,050 aircraft by 2030; however, MWB now projects a more conservative figure closer to 950. This revision reflects ongoing supply bottlenecks, slower engine deliveries, and moderating demand. Projected revenues for 2030 have been lowered to around 90 billion euros, with earnings before interest and taxes (EBIT) margins expected to fall below consensus estimates, underscoring the challenges ahead for Airbus and its peers.
For investors, these developments signal a potentially turbulent period. Delivery delays and supply chain disruptions cast uncertainty over Airbus’s growth trajectory, while intensifying competition in the high-demand single-aisle market may place additional pressure on European aerospace stocks.
Broader Industry Implications
Airbus’s current struggles mirror a wider reset within the aerospace sector. Persistent supply chain strains, coupled with the emergence of new competitors like COMAC who are closing the technology gap, suggest that established aerospace firms may need to recalibrate their production targets and profit expectations. As demand stabilizes and rivals gain ground, the consequences are likely to reverberate throughout the global aviation industry and its extensive network of suppliers.

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