Airbus, the European aviation giant, encountered turbulence in May with a 16% drop in aircraft deliveries compared to the same month last year. This news comes despite a strong overall demand for airplanes as air travel rebounds from the pandemic. The planemaker delivered only 53 aircraft in May, falling short of industry expectations and their own internal targets. Analysts had anticipated a figure closer to 60 deliveries, and some reports suggested Airbus had been aiming even higher. This shortfall puts a dent in their goal of reaching 800 deliveries for the year.
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Several factors contributed to the lower-than-expected numbers. A high number of public holidays in France, where Airbus has key assembly lines, restricted production capacity. Airbus is also facing ongoing supply chain issues and labor shortages, particularly impacting their production of single-aisle jets, a popular category.
This is not the first time Airbus has encountered production hurdles. Parts shortages have been an industry-wide problem, and achieving "significant catch-up" will be crucial for Airbus to meet its delivery targets for the quarter, according to industry analysts.
Despite the May slump, the long-term outlook for Airbus remains positive. Air travel is on a clear upswing, and demand for new aircraft is high. With a focus on overcoming production challenges and potentially expediting deliveries in the coming months, Airbus could still achieve its ambitious goals for 2024.