The director-general of the International Air Transport Association (IATA) stated in a media interview on Tuesday that confidence in Airbus' ability to meet its aircraft delivery targets has weakened amid persistent aerospace supply chain challenges. In contrast, Boeing's (BA.US) actual delivery performance has shown marked improvement compared to its sluggish performance in recent years.
"I believe we are witnessing a shift where the market widely acknowledges Boeing's significantly improved delivery performance. There is growing confidence in Boeing's ability to fulfill its commitments, while trust in Airbus is diminishing," said Willie Walsh, IATA's director-general, during the interview.
"However, this is disappointing for the industry as a whole, as global aircraft deliveries will likely fall short of previous market expectations," he added.
Recently, Airbus has faced setbacks, including quality issues with A320 fuselage metal skins, software fixes, and ongoing supply chain bottlenecks for engines and cabin components. These challenges forced the company to lower its already-questioned 2025 delivery target from 820 to 790 aircraft by year-end. Repeated downward revisions to guidance, coupled with Boeing's "relative recovery" in deliveries, have led the market to perceive Airbus' commitments as unreliable—a key reason behind the sudden loss of confidence in the company.
Walsh's latest remarks reflect this sentiment, highlighting Boeing's evident progress in meeting obligations while expressing declining confidence in Airbus' ability to deliver on its promises.
In September, Airbus' CEO publicly insisted the company was "still targeting 820 deliveries in 2025," only to reduce the figure to 790 by December. Such inconsistency has directly undermined market trust in its delivery management capabilities.
Following the 737 MAX safety incidents and the 2024 MAX 9 door plug incident, Boeing underwent regulatory production caps, the acquisition of Spirit AeroSystems, and other internal reforms. Its recent stabilization in deliveries earned public recognition from IATA as a "significant improvement."
Meanwhile, Airbus, once seen as the "more reliable player," now faces stark contrast as it repeatedly revises delivery targets downward and increases inspections due to supply chain and quality issues.
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