Airbus Grapples with Record-Low Deliveries Amid Unprecedented Demand

Airbus faces a widening gap as deliveries slump 16% to 114 jets while orders surge. Supply chain issues with the A320neo and engine delays pressure its 870-plane annual target.

The stark contrast at Airbus has never been more pronounced. While the European aerospace giant's order book swelled to a record 9,037 aircraft, its factory output in the first quarter of 2026 hit a two-decade low. This widening gap between booming demand and stuttering supply defines the company's immediate challenge.

In the first three months of the year, Airbus delivered just 114 jets to 46 customers. That figure represents a 16% drop from the 136 aircraft handed over in Q1 2025 and sits a staggering 30% below the record pace set in 2019. The monthly breakdown reveals the depth of the struggle: a mere 19 deliveries in January, 35 in February, and a slightly improved 60 in March. Of the March total, 49 were narrowbody jets and 11 were widebody aircraft.

This delivery slump is primarily driven by the A320neo family, the workhorse of the fleet. Only 81 of these single-aisle planes left the assembly lines in the quarter. The core issues are familiar but intensifying: persistent problems with fuselage panels, delayed engine shipments, and a public dispute with engine supplier Pratt & Whitney over priority for scarce power units. Airbus has reportedly sought damages from Pratt & Whitney for these holdups.

Meanwhile, demand from airlines shows no sign of cooling. The company logged a massive 331 gross orders in March alone, contributing to a total of 398 net new orders for the quarter, which included 52 widebody jets. Major deals from Asia and the Middle East, including orders from China Eastern Airlines and NAS Aviation Services, fueled the surge. Specific highlights included an order for 100 additional A320neo aircraft from AerCap and 20 A350F freighters from Atlas Air Worldwide.

This operational disconnect is pressuring the annual target. To meet its goal of approximately 870 deliveries for the full year, Airbus must now average 84 aircraft per month over the remaining nine months—a significant acceleration from the current rate. The company has also moderated its long-term production ramp-up plan, now aiming to reach a monthly rate of 70 to 75 A320neo-family jets by the end of 2027 and stabilize there, a slower climb than previously communicated.

Financially, the weak delivery numbers have overshadowed the strong order intake. Since the start of the year, Airbus shares have declined by over 12%. Technical indicators suggest the stock is deeply oversold, with a 14-day Relative Strength Index (RSI) reading of just 10.9.

Beyond its manufacturing challenges, Airbus is advancing its digital strategy. On April 1, it launched Skywise, a new wholly-owned subsidiary. Led by CEO Marc Lemeilleur, this unit consolidates the company's existing data solutions with its Navblue flight operations tools. With a global team of around 750 employees, Skywise will develop integrated software solutions for airlines, designed to be compatible with fleets from other manufacturers as well.

Two key dates loom for investors. The Annual General Meeting in Amsterdam on April 14 will see shareholders vote on a proposed dividend of 3.20 euros per share for the 2025 financial year, payable on April 23. All eyes will then turn to April 28, when Airbus releases its full Q1 financial results. This report will provide the clearest picture yet of how the delivery shortfall has impacted profitability across its programs and whether management can credibly maintain its annual guidance.