The world’s largest aircraft manufacturers are continuing to experience a run of bad luck in their supply chains.
Airbus faces delays
This week, French manufacturer Airbus announced an adjustment to its year-end aircraft delivery. The adjustment also affected company’s earnings before interest and taxes (EBIT), and free cash flow (FCF). Currently major supply chain issues are affecting the manufacturer’s operations and ability to deliver aircraft on multiple fronts.
In the statement issued on June 24, Airbus blamed persistent supply chain issues for a shortage of engines, aerostructures, and cabin equipment. The shortages are forcing the company to reduce the number of aircraft it plans to deliver in 2024 to around 770 aircraft, compared to the 800 aircraft that it had previously expected to send to customers.
Additionally, Airbus was planning to ramp up production of its A320neo aircraft to 75 per month. Airbus’ supply chain disruption have also delayed this initiative, with completion expected in 2027 rather than 2026.
Strikes with no end in sight
Both Airbus and its main competitor Boein faced additional delays this week due to disruptions in their supply chains. Reuters reported on June 25 that, after a five week-long strike by workers at Montreal-area Safran SA, management and the Confederation des syndicats nationaux union are no closer to reaching an agreement.
Workers picketed on Tuesday outside the factory in Mirabel, Quebec, where Safran has been running operations using personnel non-striking, non-union workers, a company spokesperson told Reuters.
Safran has told the union that it has made its final offer a 14.5% raise over three years, while workers represented by the union have said since the start of the strike that they need an estimated 22% salary hike. Safran manufactures landing-gear components used in both Boeing and Airbus jets. The company reported €2.7 billion in profit last year.
EU deadlines extended
Due to the pervasive nature of the supply chain issues, the European Union this week also rolled back the deadline for the inclusion of new safety features on all newly-built aircraft. Commercial aircraft manufacturers will be granted a further 18 months to meet the new requirement, shifting the deadline back from 1 January 2025 to 1 July 2026.
The safety features are designed to use energy calculations during approach and landing to predict the point at which an aircraft will come to a halt, and compare this with the runway length, in order to identify any risk of overrun.
The European Union Aviation Safety Agency announced after its investigation that several type-certificate holders have faced “significant difficulties” due to supply chain disruption.
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