Airbus CEO Optimistic Despite Tight Engine Supply for Year-End Jet Deliveries

On Tuesday, Airbus CEO Guillaume Faury expressed growing confidence in securing engine supplies, a key factor that has hindered recent jet deliveries. He indicated that CFM International, a major engine supplier, is expected to provide enough units to meet Airbus’s needs, though he acknowledged that the situation would remain “very tight.”

The global supply constraints from CFM International, the world’s largest engine manufacturer by unit sales, have been a significant factor behind Airbus’s slower-than-expected jet deliveries, leading the company to lower its annual targets back in July. CFM is a joint venture between GE Aerospace and Safran, and its supply chain challenges have posed ongoing difficulties for Airbus, which must now deliver approximately 200 aircraft in the last two months of the year to hit its 2024 target of around 770 jets—a goal that some analysts consider increasingly unlikely.

When asked whether CFM would deliver enough engines to support Airbus’s end-of-year delivery targets, Faury acknowledged that the outlook remained uncertain, emphasizing that the situation would remain tight until the end of November. He estimated that any shortfall would likely involve only a few engines rather than a significant number.

CFM has yet to respond to these updates. However, Faury’s statements, delivered with cautious optimism, reflect a more positive outlook on engine supply compared to the summer. Industry insiders suggest that this shift in tone follows intense negotiations over engine allocations.

CFM, which marks its 50th anniversary, is one of the two primary suppliers of engines for the narrowbody Airbus A320neo family, the company’s top-selling aircraft. It competes with Pratt & Whitney, a division of RTX, for this business and also holds exclusive rights to supply engines for Boeing’s 737 MAX. Like other engine manufacturers, CFM has had to balance the production of new engines with servicing existing aircraft, all while grappling with disruptions from a key supplier.

The struggle to meet Airbus’s demands led to tensions between the planemaker and CFM during the summer months. These supply difficulties were one reason Airbus reduced its delivery target for 2024 from 800 jets to “around” 770, citing not only engine shortages but also issues with other components. In July, Faury remarked that CFM’s supply challenges had taken Airbus by surprise. However, during an industry event in Brussels this week, he adopted a more conciliatory tone, attributing some of CFM’s difficulties to the impact of recent U.S. hurricanes in addition to industrial hurdles. He acknowledged that, given these circumstances, CFM was managing reasonably well.

Analysts closely monitor such statements at this time of year to gauge Airbus’s confidence in its ability to meet delivery goals. Despite Faury’s more upbeat assessment, experts caution that supply chain uncertainties persist, and unexpected challenges could arise with other parts as well.

By the end of October, Airbus had delivered 62 jets, bringing its total for the first 10 months of the year to 559. Some industry analysts have raised concerns that Airbus might be forced to revise its guidance once again if supply conditions do not improve by the end of November. However, Airbus is expected to leverage the flexibility in its target wording to count deliveries as low as 750 jets without officially lowering its forecast.

As Airbus continues to outpace Boeing, which is still recovering from internal setbacks, the European aerospace giant is relying heavily on timely deliveries of engines and other crucial components—such as seats and landing gear—to achieve another year-end surge in output.

Have you read?
The Daunting CEO Agenda: What it Means for Communications.
How to Write Attractive Book Proposals? Jennifer Scott Pens Some Tips.
The Psychology Tool Leaders Can Use to Increase Productivity.
Generative AI Offers Major Benefits for Independent Workers.
7 things I didn’t know about flying business class.