Airbus Reports Decrease in Aircraft Deliveries for May 2024, Cites Part Shortages

In May 2024, Airbus reported a 16 percent decline in aircraft deliveries compared to the same month last year, with 53 aircraft handed over to customers. This marks a deviation from the expected 60 deliveries and indicates potential challenges in meeting quarterly targets. “This is a setback,” commented Chloe Lemarie from Jefferies, highlighting a “significant shortfall” that Airbus faces in its delivery schedule.

Despite the ambitious annual goal of 800 aircraft, Airbus’s progress is being hindered by shortages of parts and labor, putting added pressure on the manufacturer as it navigates these supply constraints. Analysts like Victor Allard of Goldman Sachs and Christophe Menard of Deutsche Bank have pointed out that the upcoming months will be crucial for Airbus to stabilize its production and adhere to delivery timelines.

The order book for Airbus remains robust, with 27 new aircraft orders recorded in May, maintaining a healthy sales volume with 254 aircraft sold since the beginning of the year. Notably, the company secured an order for 20 A330 Neos from an undisclosed customer.

On the financial front, Airbus shares saw a downturn, dropping by two and a half percent to €149.68 in early afternoon trading. Despite this recent dip, the company’s stock has experienced a near seven percent increase since January.

The coming months will prove pivotal for Airbus as it strives to overcome the dual challenges of supply chain disruptions and labor shortages, all while trying to meet the high demand and maintain its competitive edge in the aerospace sector.

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