Airbus 2Q Deliveries Decline as Production Ramp-Up Slows

European aircraft manufacturer Airbus reported the delivery of 181 jets in the second quarter (April-June), down from 189 jets delivered during the same period last year. This decline comes as the company grapples with ongoing supply chain disruptions, leading it to revise its 2024 guidance and the ramp-up rate for the A320 program last month.

For the first half of the year, Airbus delivered a total of 323 jets, slightly up from 316 jets delivered in the first half of the previous year. This modest increase can be attributed to higher output in the first quarter. Despite June's deliveries reaching 67 jets—the highest monthly total so far this year—this figure fell short of the 72 jets delivered in June of the prior year, highlighting the challenges Airbus faces in accelerating production. Nevertheless, second-quarter deliveries exceeded first-quarter figures by 39 units, thanks to an uptick in single-aisle aircraft deliveries.

In the second quarter, Airbus delivered 161 single-aisle aircraft, including 85 A321neos and 60 A320neos. The company also delivered 14 A350s and six A330s as part of its widebody programs, which feature higher titanium content.

During the quarter, Airbus secured 157 gross orders, translating to 140 net orders after accounting for a few narrowbody cancellations. New orders for the A350 decreased, with only 32 orders compared to 71 in the first quarter, of which 30 were from Indian airline Indigo. Net bookings for single-aisle jets totaled 84 units, predominantly for the A321neo.

Looking ahead, Airbus has set a target of approximately 770 deliveries for 2024, down from its previous target of 800. The company has also postponed its goal of achieving a production rate of 75 A320 aircraft per month from 2026 to 2027. These adjustments are due to specific supply chain challenges, particularly with suppliers failing to scale up production at the pace required by Airbus, resulting in significant shortages of parts and engine volumes.

Airbus' A320 aircraft are powered by either CFM International's Leap-1A engine or Pratt & Whitney's PW1100G-JM. CFM also manufactures the Leap-1B engine, which exclusively powers Boeing's 737 MAX. This dual responsibility places CFM in a challenging position as it balances the demands of both Airbus and Boeing, the latter of which is currently dealing with quality issues and federal investigations. Meanwhile, Pratt & Whitney is managing accelerated inspections of its geared turbofan engines following the identification of a "rare condition in powder metal" used in the manufacture of high-pressure turbine and compressor discs last year.