Airbus Faces Mounting Delivery Challenges Amid Strong Demand

Airbus deliveries lag behind target due to Pratt & Whitney engine shortages, despite strong demand shown by AerCap's record 100-jet order. Production goals are revised down until 2028.

European aerospace giant Airbus is navigating a difficult start to the year, with delivery pressures intensifying. According to analysis from mwb Research, the company had delivered only approximately 95 aircraft by mid-March 2026. This figure represents just over eleven percent of its annual target to hand over 870 planes to customers.

Persistent Engine Issues Constrain Output

A well-documented bottleneck is becoming more severe. Chief Executive Guillaume Faury acknowledged that Airbus is contending with "significant" supply shortages for Pratt & Whitney engines. In response, the manufacturer has revised its monthly production goal for narrow-body aircraft downward to a range of 70 to 75 units until the end of 2027. A steady production rate of 75 planes per month is not anticipated before 2028.

The current pace of deliveries is lagging behind the previous year's trajectory. By the end of February 2025, Airbus had completed 7.9% of its annual delivery goal, a level that subsequently prompted a target revision. The comparable figure for this period is now only 6.2%. To achieve the 870-aircraft mark for the full year, the delivery curve in the second half of 2026 will need to be significantly steeper than it was in 2025.

mwb Research has slightly lowered its estimates for 2026 and views the risk of another target adjustment as increased. The analysts note, however, that this does not alter their discounted cash flow valuation of the company.

Record Order from AerCap Highlights Robust Demand

In contrast to the supply-side struggles, demand for Airbus aircraft remains powerful. On March 18, 2026, AerCap Holdings, the world's largest aircraft lessor, signed a firm order for 100 narrow-body jets. The agreement, the lessor's largest direct purchase from Airbus to date, comprises 23 A320neo and 77 A321neo aircraft.

Deliveries are scheduled to occur between 2028 and 2034. The order includes 45 exercised options from a prior agreement and 55 newly added aircraft, with a portion earmarked for the fleet modernization of Frontier Airlines. This major commitment underscores the sustained long-term demand in the aviation sector.

Airbus's order backlog stood at a record 8,754 commercial aircraft at the close of 2025. This substantial pipeline provides structural support for the company's long-term growth trajectory, even if it does not immediately resolve short-term delivery issues.

Geopolitical Tensions Introduce Supply Chain Risk

Analysts have identified an additional concern. mwb Research highlights the company's supply chain exposure in the Middle East. The Emirati partner Strata manufactures about 50% of the winglets for the A320 family and is slated to eventually produce roughly half of the ailerons. Many of these production facilities are situated near airports, which could be considered high-value targets and are particularly vulnerable in the event of regional conflict.

As a potential additional catalyst for the share price, mwb Research points to a possible initial public offering for MBDA, the missile systems joint venture. Such a move could enhance transparency and unlock value for Airbus shareholders.