Airbus Prioritizes Production Stability Amid Delivery Pressures

Airbus’ new commercial aircraft CEO said production stability will be his top priority as airlines and leasing companies push for improved delivery performance, while also signaling openness to a larger version of the A220 jet. Lars Wagner made the comments on Jan. 26 at the Airline Economics conference in Dublin, his first public appearance since taking the role on Jan. 1.

“The whole ecosystem is under pressure,” Wagner said, adding that Airbus faces several challenges that must be addressed before output can increase sustainably. “The way I look at it right now is, first, there are a lot of issues that we need to tackle in order to manage the ramp-up,” he said.

Airbus ended 2025 with its strongest delivery performance since the pandemic, surpassing its revised target despite ongoing supply-chain constraints. The company delivered 793 commercial aircraft, up 4% from 2024, including 607 A320-family jets and 93 A220s, following a strong year-end production push.

Order activity also remained solid. Airbus recorded 1,000 gross aircraft orders from 57 customers in 2025, resulting in 889 net new orders after adjustments. The performance pushed the company’s backlog to a record level and supported expectations for production growth in 2026.

However, Airbus has struggled to reach its target of producing 75 A320-family jets per month and is gradually increasing output of wide-body aircraft such as the A350. Wagner said resolving production bottlenecks across programs is his immediate focus.

Airbus enters 2026 targeting a further increase in aircraft deliveries after delivering 766 jets in 2024 and setting an adjusted target of about 790 for 2025. Investor guidance points to around 900 deliveries in 2026, with some internal estimates higher. Management has said the year will test industrial stability, with supply-chain constraints still affecting engines, aerostructures and cabin equipment, even as Airbus maintains its lead over Boeing in annual deliveries.

The A320neo family remains central to Airbus’ 2026 outlook as the company works toward a production rate of 75 aircraft per month in 2027. Capacity additions include a second A320 final-assembly line in Tianjin, expected to be fully operational in early 2026, and a converted A380 line in Toulouse to support A321 production by mid-year. Airbus has described 2026 as a year of gradual progress rather than a step change, with rising output expected to provide limited delivery slot-relief for airlines.

Wagner, formerly head of MTU Aero Engines, said a second priority will be assessing engine technologies for the next generation of narrow-body aircraft planned for the coming decade. Airlines have raised concerns that newer engines have delivered fuel savings at the expense of durability, contributing to maintenance disruptions. “I think we need to solve the durability question first,” Wagner said.

Airbus has also been dealing with delivery delays as a global shortage of next-generation engines disrupts fleet availability and production planning. Supply-chain constraints and extended maintenance timelines for Pratt & Whitney GTF engines have reduced usable aircraft capacity, forcing airlines to ground jets while waiting for repairs. The imbalance has driven up spare-engine prices and, in some cases, altered asset economics across the narrow-body market.

The disruption has led to an unusual outcome: more than a dozen nearly new Airbus A320-family aircraft have been dismantled for parts, according to industry sources. At Castellón Airport in Spain, aircraft as young as six years old were stripped to recover engines valued at up to US$20 million each in 2025. Data from Cirium shows about 636 GTF-powered Airbus jets, roughly one-third of the fleet, are grounded or in storage, compared with about 4% of aircraft powered by rival CFM engines.

During an onstage discussion, Wagner asked Air Lease Corp. CEO John Plueger what customers would like to see next from Airbus. Plueger said there could be demand for a larger version of the A220, prompting Wagner to respond, “Me too.” 

Other lessors reiterated that delivery performance remains the main concern. SMBC Aviation Capital CEO Peter Barrett said predictability is essential. “At the end of the day we are contracting over many years for billions of dollars worth of equipment, and you need to have predictability and performance,” he said.

Airbus Americas warned in December 2025, that US tariffs on aviation parts from Mexico and Canada could raise production costs and weaken the competitiveness of US aircraft assembly lines, despite ongoing investments. The company said the measures risk domestic output as global demand rises.

Airbus forecasts average passenger traffic growth of 3.6% through 2044, supported by 2.5% annual GDP expansion, rising trade and population growth of 1.2 billion people. An expanding middle class and increased urbanization are expected to sustain demand, supported by improving air travel affordability.

To meet demand and replace aging fleets, Airbus expects the global fleet to nearly double to 49,210 aircraft by 2044. The outlook includes demand for 43,420 new aircraft, mainly single-aisle jets, with about 18,930 deliveries replacing older models.