Airbus Faces Supply Chain Woes, Threatening 2024 Delivery Target

Airbus is grappling with escalating concerns over its supply chain, particularly with key supplier Spirit AeroSystems. Delays in the production of essential parts for Airbus’ A350 and A220 models could impact the company’s ambitious target of delivering 770 aircraft by the end of 2024, according to multiple industry sources. These delays are tied to supply chain disruptions at Spirit's North Carolina and Belfast plants, which provide fuselage and wing components.

"We are delivering Airbus products based on our customer’s schedule," said Joe Buccino, Spokesperson, Spirit AeroSystems.

Internal sources have highlighted specific concerns, such as problems with composite stringer clips—critical parts that attach supporting components within the aircraft’s fuselage. While Airbus relies heavily on Spirit for key structural components, Spirit primarily supplies Boeing. 

In response to these supply chain issues, Airbus has taken proactive steps. The European aerospace giant has deployed additional personnel to Spirit's Kinston, North Carolina plant to monitor production performance—a move Airbus claims is part of a "long-standing joint improvement program." However, Airbus has also indicated broader challenges with its suppliers, particularly in the aerostructures domain.

A critical element of this situation is the pressure on Airbus to meet its annual delivery target. New data reveals that Airbus must increase deliveries by 11% in the fourth quarter to reach its goal of 770 aircraft for the year. However, some analysts have expressed doubts, predicting a year-end total of between 750 and 760 planes instead.

One significant logistical adjustment Airbus has made involves airlifting A220 wings from Spirit’s Belfast plant to its assembly facility in Montreal. Traditionally, these wings are shipped by sea, but the accelerated production pace and the need to maintain delivery schedules prompted Airbus to deploy one of the world’s largest cargo planes, the Antonov An-124.

While Spirit AeroSystems has confirmed an increase in production for the A220, other elements of the supply chain, including engine and landing gear components, have also been affected by disruptions. These delays have contributed to the growing backlog of aircraft orders at Airbus, which has expanded by almost 10% year-over-year. As of August 2024, Airbus was reportedly 2,500 aircraft ahead of its competitor Boeing in terms of outstanding orders.

In July, Airbus CFO Thomas Toepfer acknowledged these supply chain challenges during a call with analysts, emphasizing that the company was facing issues mainly related to engines and landing gear since June 2024.