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Airbus shares slip on new delivery delays warning - report

Published 02/09/2024, 07:10 AM
Updated 02/09/2024, 07:13 AM
© Reuters.  Airbus shares slip on new delivery delays warning - report

Airbus (EADSY (OTC:EADSY)) is informing airlines about further delays in aircraft deliveries, extending the wait for some planes that were initially scheduled for the latter part of 2024 and into 2025 by several months, Reuters reported.

“We are in continuous dialogue with our customers. We are still operating in a complex environment,” an Airbus spokesperson reportedly told Reuters.

The company’s shares fell 1.1% in Paris.

This decision is attributed to persistent issues with the supply chain, as reported by industry insiders last Friday.

Despite a promising start to the year, with Airbus achieving a 50% increase in January deliveries compared to the previous year—a period marred by component shortages and production challenges—the company still faces a tight supply of engines and other critical parts.

Last week's Airline Economics conference in Dublin highlighted concerns that the shortfall in available aircraft to satisfy the rebounding demand might extend over a few years.

Steven Udvar-Hazy, Executive Chairman of Air Lease, commented at the conference that delays of up to a year are becoming increasingly common for single-aisle planes from both Airbus and Boeing.

After a year where Airbus beat its delivery target by distributing 735 aircraft, analysts from Jefferies anticipate the company may set a target of about 800 deliveries for 2024. The official announcement is expected on February 15.

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