Airbus Faces Mounting Delivery Delays as Production Outpaces Handovers

Airbus grapples with a growing backlog of undelivered LEAP-engine jets, creating a split in analyst ratings and pressuring its 2026 delivery target ahead of key shareholder meeting.

Strong annual profit figures for the past year are now a distant memory for the European aerospace giant, Airbus. The company's immediate focus has shifted to a growing logistical challenge: an accumulation of unfinished aircraft on its tarmacs. Despite manufacturing running at full capacity, a significant bottleneck in delivering planes to customers has emerged, creating a clear division in analyst sentiment.

Engine Issues Create a Structural Bottleneck

Recent quarterly data provides concrete evidence for the concerns of some market observers. By mid-March 2026, Airbus had manufactured 141 aircraft but had only managed to deliver 94 to customers. This widening gap points to persistent structural supply chain issues. The nature of the bottleneck appears to have shifted. While Pratt & Whitney engines were previously cited as the primary constraint, the current backlog is concentrated in jets fitted with LEAP engines. Of the 55 aircraft of this type built, a mere 22 have left the production facilities.

This operational slowdown is directly influencing expert ratings. A split has emerged among financial institutions. Barclays and RBC Capital maintain their buy recommendations, with price targets as high as 220 euros. In contrast, other firms are adopting a more cautious stance. Jefferies has reduced its target to 195 euros, and Erste Group downgraded the stock to a "hold" rating. Market performance reflects this uncertainty. Trading at 40.40 euros, the share price has declined by over 17% since the start of the year. To achieve its ambitious annual target of 870 deliveries, Airbus must substantially accelerate its handover rate in the coming months.

Shareholder Meeting to Bring Board Refresh

Beyond these operational hurdles, attention is turning to the upcoming Annual General Meeting scheduled for April 14 in Amsterdam. Shareholders will vote on a proposed dividend of 3.20 euros per share, supported by an operating profit (EBIT) of 7.1 billion euros for 2025. The meeting will also see notable additions to the Board of Directors:
* Henriette Hallberg Thygesen, CEO of Terma A/S, nominated for a three-year term.
* Oliver Zipse, Chairman of the Board of Management of BMW AG, nominated for a one-year term.
* Extensions for the mandates of current members Mark Dunkerley, Stephan Gemkow, and Antony Wood.

All eyes will be on the first-quarter results, due for release on April 28. Management will be under pressure to outline concrete strategies for closing the production-to-delivery gap for LEAP-powered aircraft. Success is critical to safeguarding the company's longer-term goal of reaching a production rate of 75 planes per month by 2027.