Jet deliveries from Airbus are reportedly reducing in April due to a scarcity of engines.
Revised Article:
Airbus, known by its over-the-counter tickers EADSF and EADSY, churned out around 55 planes in April, signifying a deceleration compared to March. This slowdown can be attributed to ongoing engine shortages, particularly for the A320neo family – a high-demand aircraft model. According to a Bloomberg News report on Monday, this information was sourced from individuals with knowledge of the matter, reports Reuters.
These engine shortages stem from supply chain constraints that are limiting the availability of vital components required for engine production, affecting the overall engine supply. The LEAP 1A engines by CFM International are particularly in short supply, leaving several completed aircraft without engines, commonly referred to as "gliders." This predicament has been a thorn in Airbus's side, causing disruptions in delivery schedules.
In a bid to address these shortages, CFM International is planning to boost engine production by 15-20% in 2025 compared to the previous year. This increase is essential for supporting the resurgence of commercial aviation and meeting the escalating demand for engines from major players like Airbus and Boeing[4][5].
Despite these delays, Airbus holds steadfast to its delivery target of 820 aircraft for 2022, emphasizing strategic production increases and a robust order book[2][3]. However, whether the company can meet its goal of increasing A320neo production to 75 planes per month by 2027 remains uncertain without sufficient engine supplies and easing of the current supply chain constraints[1][5].
Insights:- The engine shortages are not exclusively caused by tariffs, but external factors like trade barriers can exacerbate existing supply chain bottlenecks, further complicating production increases.- The recovery of the commercial aviation sector post-pandemic has precipitated a surge in demand for narrow-body aircraft like the A320neo, putting pressure on engine manufacturers to expand production. However, this is challenging given the intricate supply chains and manufacturing processes involved.
- The escalating demand for LEAP 1A engines from companies like Airbus and Boeing in the aerospace industry is directly linked to the surge in demand for narrow-body aircraft like the A320neo in the technology sector, as reported in general-news outlets.
- While Airbus aims to address the engine shortages by increasing its aircraft delivery target for 2022 and boosting A320neo production, the finance sector plays a crucial role in supporting CFM International's plans to boost engine production by 15-20% in 2025, thus ensuring the resurgence of the broader aerospace and commercial aviation industry.
