Airbus (EPA:AIR) reported delivering around 51 aircraft in May, as indicated by a Reuters report citing industry insiders. This translates to a 4% decline compared to the prior year and sets the year-to-date total at 243 aircraft, down 5% from early 2024.

Supply Chain Obstacles Impact Performance

As the world’s leading aircraft manufacturer, Airbus continues to face persistent delivery delays, causing frustration among its airline customers. The company attributes the slowdown mainly to engine supply issues, although it expects gradual improvements over the summer months.

Airline Executives Voice Concerns

During the recent airline industry summit in New Delhi, airline executives expressed mounting frustration regarding Airbus’ reliability. Notably:

• The CEO of Saudi Arabia’s flyadeal labeled the situation as “inexcusable.”

• The need for delivery reliability remains critical as airlines strive to increase post-pandemic capacity.

Are Annual Targets Still Achievable?

Airbus has not altered its yearly target of delivering 820 aircraft by the end of the year, reflecting a 7% growth over last year. Yet, with current outputs lagging expectations, the June delivery report expected on June 5 will be pivotal.

Strategic Insights for Investors

For those monitoring Airbus’ operational performance, utilizing the Full Financial as Reported API affords historical production data, while the Key Metrics (TTM) API tracks essential performance ratios. These tools can help gauge whether the delivery backlogs are affecting cash flows and margins.

As pressure escalates from dissatisfied airlines and year-end targets loom, Airbus needs to aim for transitioning backlogs into actual production—ensuring market confidence remains intact.