Paris, February, 21 - Airbus shares dropped approximately 6% following the announcement of its 2026 commercial aircraft delivery target of around 870 units, a figure that fell short of analyst expectations, hovering near 880 to 900. The European planemaker, which delivered 793 aircraft in 2025, a solid performance amid ongoing supply chain challenges, attributed the conservative guidance primarily to significant engine shortages from Pratt & Whitney. These constraints have notably slowed production ramp-up for the high-demand A320neo family, its bestselling narrowbody jets, forcing a revision to monthly output targets of 70 to 75 aircraft by year-end, rather than the previously anticipated 75. Despite achieving record financial results in 2025, including strong profits driven by robust demand and a massive order backlog, the tempered outlook overshadowed positive momentum and triggered investor concerns over near-term execution risks in the competitive aviation sector.
The delivery guidance underscores persistent industrial hurdles facing Airbus as it seeks to capitalize on sustained global demand for fuel-efficient aircraft. Post-pandemic recovery has fueled airline fleet modernization efforts, yet supply chain bottlenecks, particularly engine availability, continue to limit production scaling. Airbus emphasized that its A320 program remains the core driver of output, with widebody models like the A350 and A330 maintaining stable rates. The company has publicly highlighted frustrations with Pratt & Whitney's inability to meet committed engine volumes, signaling potential enforcement of contractual rights to secure a reliable supply. This situation highlights broader challenges in the aerospace manufacturing ecosystem, where component shortages can directly impact delivery schedules and financial projections.
Intensifying competition from Boeing adds further pressure to Airbus's position in the duopoly that dominates commercial aviation. Boeing, after years of setbacks, has shown signs of recovery, narrowing the delivery gap in recent periods and even outpacing Airbus in monthly orders and handovers at the start of 2026. While Airbus maintained leadership in overall 2025 deliveries, Boeing's improving execution and order intake signal a tightening race for market share. Airlines increasingly weigh options between the two manufacturers, making consistent production and timely deliveries critical for securing long-term contracts and sustaining backlog conversion into revenue.
Despite the stock reaction, Airbus's long-term fundamentals remain supported by unprecedented demand and a record backlog exceeding 8,000 aircraft. The company projects adjusted operating profit around €7.5 billion for 2026, reflecting cautious optimism amid headwinds. As the industry navigates supply constraints and competitive dynamics, Airbus's ability to resolve engine issues and stabilize production will be key to reclaiming momentum and meeting the surging needs of global air travel.