Airbus Delays A320neo Production Target to 2027 Amid Engine Delays

Airbus has officially delayed its ambitious production target for the A320neo (Airbus A320neo (New Engine Option)) family, pushing the goal of manufacturing 75 aircraft per month to the end of 2027. The decision, announced alongside its 2025 annual results, is a direct consequence of the ongoing Airbus A320neo production delay caused by persistent engine delivery issues from supplier Pratt & Whitney (P&W).

The revised timeline underscores the severe and ongoing stress within the global aerospace supply chain. For airlines, this aircraft manufacturing bottleneck means longer waits for new, fuel-efficient narrowbody jets, potentially impacting fleet renewal plans and capacity growth. The public nature of the dispute between Airbus and P&W, a subsidiary of RTX Corporation (RTX), highlights the mounting pressure on original equipment manufacturers (OEMs) to meet record-breaking order backlogs amid significant aviation supply chain issues.

Production Target Revision

According to the company's 2025 annual results, Airbus now aims for a production rate of 70 to 75 aircraft per month by the end of 2027. This modifies the previous, more aggressive Airbus production target of achieving a stable rate of 75 aircraft per month during 2027. The current production rate for the A320 family, which includes both the A320neo and the older A320ceo (Current Engine Option) models, is approximately 60 aircraft per month.

Despite the ramp-up challenges, Airbus reported strong performance in 2025, delivering 793 commercial aircraft and achieving revenues of €73.4 billion, a 6% year-on-year increase. The manufacturer is guiding for around 870 commercial aircraft deliveries in 2026. The demand for its products remains robust, with a total commercial aircraft backlog of 8,754 jets.

Engine Supplier Under Scrutiny

Airbus leadership has been publicly critical of Pratt & Whitney's performance. The primary issue centers on the production and reliability of the P&W Geared Turbofan (GTF) engine, one of two engine options for the A320neo family. These engines have been plagued by durability issues, most notably a manufacturing defect related to powdered metal used in high-pressure turbine discs, which has led to extensive recalls and operational disruptions for airlines.

In a call with analysts, Airbus CEO Guillaume Faury expressed significant frustration over the Pratt & Whitney engine delays. "Pratt & Whitney's failure to commit to the number of engines ordered by Airbus is negatively impacting this year's guidance and the ramp-up trajectory," Faury stated. He described the situation as "very painful and unsatisfactory" and confirmed that Airbus is prepared to "enforce contractual rights."

Faury added, "We have to base our guidance on what they tell us now they're willing to commit and deliver. We'll continue to work hard to enforce our contractual rights, which we believe are not respected in that case…We are not happy with the outcome, but that's what it is today." The dispute highlights the tension between engine manufacturers, who must balance producing new engines with a high demand for maintenance, repair, and overhaul (MRO) services for the in-service fleet, and airframers who need a predictable supply for their assembly lines.

Broader Industry Implications

The delay is not an isolated event but a symptom of wider aviation supply chain issues that have persisted since the post-pandemic recovery began. Manufacturers are struggling to source a range of components, from engines and aerostructures to simple cabin equipment, hindering their ability to meet the surge in demand from airlines.

For carriers awaiting A320neo family aircraft, the production slowdown directly impacts their strategic planning. The neo series offers significant fuel efficiency gains over previous-generation aircraft, and delays can postpone cost savings and emissions reduction targets. With backlogs stretching for years, any slip in the production schedule has a cascading effect on airline capacity and network expansion plans. The situation is a clear example of how bottlenecks in one part of the supply chain can constrain the growth of the entire commercial aviation sector. More information on the company's official stance can be found in the Airbus Newsroom.

Why This Matters

In my view, this is more than just a revised production schedule; it's a public admission that the aerospace supply chain is not healing as quickly as hoped. The unusually frank criticism of a key partner like Pratt & Whitney by Airbus's CEO signals a breaking point. It demonstrates that the immense pressure to ramp up production is creating deep fractures between major industrial partners. For aviation professionals, this story is a crucial indicator of the systemic risks that will continue to define the industry's recovery, directly impacting everything from airline profitability to fleet strategy for the remainder of the decade.

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