Airbus has announced plans to manufacture 820 aircraft this year as it works to overcome supply chain challenges. The European aerospace giant expects a 7% increase in deliveries compared to the 766 planes produced last year. However, it reported an 8% decline in 2024 earnings (excluding certain charges), bringing its income to €5.4 billion (£4.7 billion).
Chief Executive Guillaume Faury acknowledged that 2024 had been a challenging year but emphasized that strong order bookings reflected steady demand for Airbus products and services.
The company, based in Toulouse, France, also disclosed a €300 million charge related to difficulties in its space division, adding to €1 billion in losses already recorded for that segment. Airbus is now exploring a potential merger with French competitor Thales’s space division.
Efforts to scale up commercial aircraft production have been complicated by ongoing supply chain disruptions, particularly stemming from pandemic-era setbacks. These issues have hindered Airbus’s ability to fully capitalize on its lead over Boeing, which has struggled with prolonged safety crises, including a high-profile mid-air door panel detachment last year.
Boeing’s troubles deepened as U.S. President Donald Trump suggested he might purchase used Boeing aircraft for Air Force One due to delays and rising costs. While touring a nearly 35-year-old Boeing 747-200 currently in use, Trump criticized Boeing’s slow progress and hinted at converting a secondhand plane instead. However, he ruled out acquiring an Airbus aircraft.
Airbus could face challenges if Trump imposes new trade tariffs, as its financial outlook does not account for potential restrictions on aircraft exports and component imports, particularly from Canada. While Airbus does manufacture some planes in Alabama, its international supply chain remains vulnerable.
Despite these uncertainties, Airbus remains on track to boost production of its popular A320 model. However, the larger A350 and smaller A220 aircraft are facing supply chain disruptions, particularly linked to Spirit AeroSystems, which is undergoing restructuring as part of a Boeing-led acquisition. Airbus will take over A220 wing production in Belfast as part of this process.
Additionally, the company has postponed the launch of a freighter version of the A350 by a year and reported a £121 million charge due to further delays in the development of its A400M military transport aircraft.
