By Mauro Orru
Airbus said it was lowering its aircraft delivery target for the year due to a quality issue with metal panels on hundreds of A320 jets, a major blow to the group as it struggles to overcome supply-chain hurdles.
The European plane maker said Wednesday that it expects to deliver about 790 commercial planes to customers this year compared with a prior target of roughly 820, but reiterated its 2025 financial targets. Airbus dispatched 585 aircraft by the end of October.
While the company tends to deliver more aircraft toward the end of the year, analysts said Airbus was unlikely to ship all remaining planes needed to meet its prior delivery goal after uncovering the panel problem.
The issue, the latest setback for the group days after it warned that thousands of A320 jets required an urgent software fix, relates to the thickness of panels that sit on top of the cockpit and either side of the jet's right and left front doors. The fault has now been rectified and all newly produced panels are safe, a spokesman said Monday.
Airbus described the problem as a "supplier-quality issue" since the affected parts were produced by a Spanish company, showing that the group is still struggling to overcome supply-chain snarls.
Airbus has been in a tough spot for years because of hurdles in procuring engines and cabin equipment from suppliers to assemble its planes and deliver them to customers on schedule.
In October, the company lowered its production target for A220 narrow-body aircraft to 12 planes a month next year compared with 14 planes a month previously because of what it called balance between demand and supply, reflecting a number of supply challenges, Chief Executive Guillaume Faury said. He also cited the need to integrate Spirit AeroSystems Holdings' operations that provide wings for A220 aircraft.
Airbus agreed earlier this year to buy some Spirit facilities that make parts for its jets in the U.S., Europe and Africa, in a move to stabilize its supply chain.
For the year, the group said adjusted earnings before interest and taxes--its preferred measure of profitability--should still come in at roughly 7 billion euros ($8.14 billion). Free cash flow before customer financing--a metric closely watched by analysts and investors--is still projected at roughly 4.5 billion euros.
Write to Mauro Orru at mauro.orru@wsj.com
(END) Dow Jones Newswires
December 03, 2025 01:46 ET (06:46 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Comments