By Mauro Orru
Airbus is lowering its production target for A220 narrow-body aircraft as supply-chain challenges continue to weigh on the European plane maker's manufacturing operations.
The company said Wednesday that it now expected to churn out 12 A220 aircraft a month next year compared with a previous target of 14 planes a month. It said it still expects to produce 75 A320 narrow-body planes a month in 2027 and five A330 aircraft a month in 2029. For its bigger A350 model, the company continues to target 12 planes a month in 2028.
Airbus has been in a tough spot for years because of challenges in procuring engines and cabin equipment that the company needs to assemble its planes and deliver them to customers on schedule.
Earlier this year, Airbus agreed to buy some Spirit AeroSystems Holdings facilities that make parts for its jets in the U.S., Europe and Africa, in a move to stabilize supply. Airbus executives had previously said that challenges, especially with Spirit, were pressuring plans to increase production of A220s and A350 wide-body aircraft.
Chief Executive Guillaume Faury said in an earnings call that supply-chain hurdles remained, particularly with engines for narrow-body planes. The decision on the A220 is the "result of what we call balance between demand and supply, reflecting a number of supply challenges," he said. Faury also cited the need to integrate Spirit's operations that provide wings for A220 aircraft.
The move from Airbus to lower its A220 production target comes hours after its American rival Boeing said it booked a $4.9 billion noncash charge in the third quarter to account for a pushback in the first delivery of its new 777X model to 2027 after falling behind schedule on some certification milestones.
Airbus confirmed its aircraft-delivery and financial targets for the year, which now include the effects of currently applicable tariffs and the integration of certain Spirit operations.
The company welcomed the recent trade agreement between the U.S. and the European Union, saying it brought much-needed predictability to an industry that relies on closely integrated supply chains. However, it cautioned that guidance assumes no additional disruptions to global trade or the world economy, air traffic or the supply chain.
Airbus dispatched 507 commercial aircraft to customers by the end of September and is targeting roughly 820 deliveries for the whole year. The company tends to deliver more aircraft toward the final months of the year.
The group said adjusted earnings before interest and taxes--its preferred measure of profitability--should come in at roughly 7 billion euros ($8.16 billion) this year. Free cash flow before customer financing--a metric closely watched by analysts and investors--is still projected at roughly 4.5 billion euros.
Airbus posted revenue of 17.83 billion euros for the third quarter, up 14% on year. Adjusted Ebit climbed 38% from a year earlier, to 1.94 billion euros. Net profit increased 14%, to 1.12 billion euros.
Analysts had forecast revenue of 17.37 billion euros, adjusted EBIT of 1.76 billion euros and a net profit of 1.25 billion euros for the quarter, according to a market consensus provided by the company based on estimates from 18 analysts.
Quarterly results come a week after Airbus, France's Thales and Italy's Leonardo announced plans to pool their space activities into a new company in a bid to better compete with Elon Musk's SpaceX.
The company will bring together the trio's satellite and space-systems manufacturing as well as space services. It expects to employ around 25,000 people across Germany, France, Italy, Spain and the U.K.
Write to Mauro Orru at mauro.orru@wsj.com
(END) Dow Jones Newswires
10-29-25 1521ET
