In a recent update, European aviation giant Airbus revealed a significant challenge in meeting its ambitious production targets for 2024. In October alone, the company managed to deliver 62 aircraft, a number far below what is required to stay on course with their annual goal. To meet their target of delivering 770 aircraft by the end of 2024, Airbus must accelerate production and deliveries dramatically over the remaining two months.
Despite delivering 497 commercial planes from January to September this year, Airbus now faces the formidable task of manufacturing and delivering an additional 211 planes by year’s end. This requires a substantial 71% increase in their production rate compared to their October performance. The primary culprit for this production shortfall? Widespread supply chain disruptions throughout 2024 that have thrown a wrench into Airbus’s plans.
Looking ahead, Airbus has mapped out production goals for the coming years. They aim to increase the production rate of the A220 to 14 aircraft monthly by 2026. For the A320 family, they set a goal of 75 aircraft per month by 2027. By 2028, the A330’s target is four aircraft per month, while the A350 aims for 12 aircraft monthly.
From a financial standpoint, Airbus has set a target for an adjusted EBIT of €5.5 billion in 2024. For the first three quarters of the year, they reported an adjusted EBIT of €3.02 billion, which represents 9.2% of the total revenue and 54.9% of their yearly financial target.
Despite the hurdles, Airbus remains optimistic about achieving its objectives, provided there are no new disruptions in the global economy, air traffic, or its supply chain. This confidence stems from their strategic plans and their ability to adapt to changing circumstances in the aviation industry.
