Airbus and Boeing Face Supply Chain Hurdles: Can They Meet Production Goals?

Both Airbus and Boeing are facing significant challenges. They are trying to increase aircraft production rates. This is to meet the strong global demand for new jetliners. However, the commercial aviation supply chain is holding back their efforts. Persistent aerospace parts shortages and labor issues are the main constraints.

Engine Bottlenecks and Labor Shortages

The most critical bottleneck is in engine manufacturing. Airframe production is now outpacing engine production. Engine manufacturers are struggling to keep up with demand. This is especially true for the CFM LEAP and Pratt & Whitney GTF engines. These power the popular narrowbody aircraft output like the Boeing 737 MAX and Airbus A320neo family.

• The shortage affects high-temperature engine parts.
• Some newly built aircraft are parked, waiting for engines.
• A shortage of skilled labor is a major constraint across the supply chain.

This labor shortfall impacts factories and Maintenance, Repair, and Overhaul (MRO) facilities. The result is longer turnaround times for engine repairs and inspections.

Production Targets and Aircraft Delivery Delays

Both manufacturers have ambitious Airbus and Boeing production ramp-up plans. However, aircraft delivery delays are becoming common.

Airbus A320neo Family

Airbus aims to raise its A320neo family production rate. The goal is 75 aircraft per month by 2027. The company had to lower its 2025 delivery target to 790 jets. This revision was due to persistent supply chain disruptions. Issues include engine delays and fuselage quality problems. Airbus is also managing specific challenges on its widebody A350 program.

Boeing 737 MAX

Boeing is also working to increase its single-aisle jetliner production. The US Federal Aviation Administration (FAA) recently approved a production rate increase. Boeing can now raise its 737 MAX output to 42 units per month. Boeing is also targeting a rate of ten 787 Dreamliners per month by 2026. The company must balance this increased output with maintaining safety and stability.

Financial Impact on Global Airlines

The aviation industry challenges are hitting airlines hard. The global order backlog is now over 17,000 aircraft. This represents nearly 12 years of current production capacity. Airlines are struggling to replace older jets at the required pace.

• The financial cost to the airline industry from these supply chain bottlenecks is severe.
• This cost is estimated to exceed $11 billion in 2025, according to a study by IATA and Oliver Wyman.
• Airlines are forced to operate older, less fuel-efficient aircraft. This leads to higher fuel and maintenance expenses.
• In extreme cases, newer aircraft are reportedly being dismantled for parts. This is due to the extreme engine shortage.

Successfully meeting aircraft demand requires a stable supply chain. The current fragility means small disruptions can cause major production delays. Both manufacturers are focused on stabilizing their supplier networks. This is crucial for the industry's financial health and future growth.

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