Airbus Projects Dip in Titanium Demand for 2025, Recovery in 2026

Airbus

European aerospace giant Airbus has forecasted a temporary decline in titanium demand in 2025, following higher-than-expected offtake in 2024 driven by buffer stock accumulation. However, the company anticipates a rebound in 2026 and is urging suppliers to prepare for a renewed increase in demand. Speaking at the International Titanium Association conference in Austin, Olivier Maillard, Airbus' vice-president of metallic material procurement, outlined the company’s titanium procurement strategy and ongoing challenges.

2024 Buildup, 2025 Adjustment, 2026 Recovery

During ramp-up preparations in 2024, Airbus engaged in buffer stock accumulation, leading to a titanium offtake that exceeded actual production requirements. This buildup resulted from the steep ramp trajectories planned across all of Airbus' programs. Maillard explained that this excess stock will lead to a temporary adjustment in 2025, after which the demand trajectory is expected to normalize.

Despite a slight increase in 2024 demand compared to pre-pandemic 2019 levels, Airbus has adjusted its outlook, curbing further growth from 2025 to 2026. Projected titanium consumption in 2026 is expected to remain below peak levels seen in 2017-2018, during which the company was intensively producing the A350 and A380 models.

Exact figures for 2026 titanium volumes were not disclosed, but Maillard’s comments suggest cautious optimism for a recovery post-2025. For narrowbody aircraft, Airbus is targeting a production rate of 75 A320s per month by 2027, deferred by a year from 2026 due to supply chain constraints, and an unchanged rate of 14 A220s per month by 2026. Supply chain issues, particularly concerning missing parts and engine shortages, have prompted this adjustment.

To support the A320 ramp-up, Airbus is expanding its final assembly lines in Toulouse, Hamburg, Tianjin, and Mobile, yet remains vigilant of ongoing supply chain pressures. Meanwhile, its widebody aircraft programs continue to be a major driver of titanium demand, due to their higher weight and titanium content. For instance, the A350 is approximately 14-15% titanium by weight, compared to around 10% for the A320neo.

Maintaining Ties with VSMPO-Avisma Amid Geopolitical Tensions

Maillard reiterated Airbus' ongoing commitment to sourcing titanium from Russian supplier VSMPO-Avisma, underlining that the company remains compliant with current sanctions. "There are no sanctions on VSMPO titanium today, so yes, we continue to source VSMPO titanium," he stated. However, should the geopolitical situation change and new sanctions be imposed, Airbus will comply immediately and seek alternatives, emphasizing the importance of diversifying its procurement strategy across global suppliers to mitigate risk.

The geopolitical climate has underscored the need for Airbus to build a more robust and diversified supply chain, particularly for critical materials like titanium. The company’s efforts to secure its supply while adapting to global uncertainties reflect a strategic approach to maintaining production stability across its programs.