Airbus Shares Tumble Amid Supply Chain Challenges

Airbus stock plunged 11% on Tuesday morning, reflecting ongoing supply chain challenges that have disrupted commercial aircraft deliveries. Despite previously announcing ambitious plans to surpass Boeing this year, the European aerospace giant faces significant hurdles in achieving its targets.

The drop stemmed from Airbus's announcement of persistent supply chain issues, forcing the company to scale down its commercial aircraft delivery forecasts for the year. Initially projecting 800 deliveries, Airbus now anticipates delivering approximately 770 aircraft due to what it described as "persistent specific supply chain issues" affecting critical components such as engines, aerostructures, and cabin equipment.

These challenges have cast a shadow on the company's ambitious plans to overtake its rival Boeing this year, widening the gap between the two aerospace giants. In the first quarter of 2024 alone, Airbus managed to deliver 142 planes, nearly double the number Boeing delivered during the same period. Boeing's production struggles, including issues with regulatory scrutiny and operational setbacks, have inadvertently aided Airbus's delivery performance.

Further compounding these issues, Airbus has also been forced to adjust its production timeline according to Quartz. Plans to achieve a rate of 75 A320 aircraft per month have now been postponed to 2027, a year later than originally scheduled.

Airbus is expected to disclose its complete half-year financial results on Jul. 30.