Airbus Faces Supply Chain Hurdles Amid Record Demand

The global aircraft leasing industry faces ongoing challenges due to persistent delays in aircraft manufacturing, which are expected to continue until at least the end of the decade. Supply chain disruptions have hindered Airbus and Boeing from meeting production targets, keeping aircraft prices high and restricting market entry for new players. 

In a recent interview with CNBC, Guillaume Faury, CEO, Airbus, highlighted the aircraft manufacturer's surging demand and the supply chain constraints that are currently hindering production. According to Faury, Airbus has a backlog of more than 8,000 aircraft to deliver in the coming years, surpassing the number of planes it has produced. While demand remains strong, the company's ability to ramp up production is limited by supply chain bottlenecks, primarily due to delays from key suppliers.

Airlines are struggling with delayed deliveries and rising leasing costs. Despite production targets, such as Airbus’ goal of 75 A320-family jets per month by 2027, supply chain issues continue to cause setbacks, MBN previously reported. Faury emphasized that Airbus is experiencing constraints in increasing production speed due to supply issues, particularly with engine manufacturers and aerostructure suppliers. The company has set a production goal of approximately 820 aircraft for 2025, but uncertainties remain, forcing Airbus to navigate unexpected challenges throughout the year.

Among the most critical supply chain issues, Faury pointed to problems with engine availability for single-aisle aircraft, particularly the A320 family. The Pratt & Whitney GTF engine has faced complications stemming from a metal powder defect that led to a large-scale recall. Additionally, CFM International has encountered production difficulties, which resulted in shortages at the end of 2024 and continued into 2025.

For larger aircraft models like the A220 and A350, Airbus has faced significant hurdles due to delays from Spirit AeroSystems. The company is working toward acquiring specific work packages from Spirit, including the Section 15 fuselage of the A350 manufactured in the United States and A220 wings produced in Belfast, UK. Faury indicated that a deal is expected to be signed soon, with a mid-year closing anticipated. This acquisition would allow Airbus to invest in these production lines directly and accelerate output.

Production Targets and Future Growth Plans

Despite these challenges, Airbus remains committed to its long-term growth strategy. In its reports Full-Year (FY) 2024 results, the company has reaffirmed its goal of producing 75 A320 aircraft per month by 2027. Faury stated that while short-term supply chain disruptions persist, Airbus' overall production system is progressing at a healthy pace.

The company's investment in ramping up production spans multiple product lines, including the A220, A320, A350, and A330. The A330 program, however, remains more modest, stabilizing at a production rate of four aircraft per month. Faury underscored that Airbus is focused on increasing production capacity significantly through 2026, 2027, and 2028 to meet soaring demand.

Navigating Geopolitical Risks and Trade Uncertainties

Airbus is also monitoring potential geopolitical risks, including the possibility of tariffs imposed by the US government. The company has taken measures to mitigate the impact of trade restrictions by expanding its presence in the United States. Airbus operates a major production facility in Mobile, Alabama, where it already assembles A220 and A320 aircraft, with plans to add a third assembly line.

If tariffs are implemented, Airbus may adjust its delivery strategy by prioritizing customers outside the United States. However, Faury expressed optimism that, given the strong interdependencies between the North American and European aerospace industries, significant tariff barriers would be detrimental to both sides.