Friday, November 22, 2024

Family holidays at risk from Airbus engine parts delays

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The world’s biggest planemaker has warned of a shortage of new aircraft and engine parts, threatening to derail families’ holiday plans. 

Airbus said on Tuesday it was dealing with “persistent specific supply chain issues”, forcing it to cut the number of aircraft it expects to ship this year from 800 to 770, 50 fewer than it delivered last year.

Guillaume Faury, the Airbus chief executive, said engine delays were becoming a “significant issue” in 2024. 

“That is a new situation we were not expecting,” he said, as Airbus warned profits would take a hit this year and cut back its growth targets.

Mr Faury said earlier this month that the current supply bottleneck could persist for the next two to three years, adding last night that the problem has “significantly degraded” this summer.

Seats and other cabin parts are in particularly short supply, Airbus said.

Shares in the Paris-listed company fell by 9pc following the update.

Summer schedule rethink

This is the latest in a series of blows to the travel industry, as existing supply chain disruption has already forced airlines to rethink their summer schedules.

Analysts believe the latest shortages will further complicate carriers’ plans further next year, with easyJet among the airlines reliant on the Airbus A320.

Underpinning disruption at Airbus is a shortage of parts, although the manufacturing industry is also struggling to recruit staff after sacking thousands of workers during Covid.

An industry source said that delayed deliveries could lead to higher air fares in the medium term, as aircraft availability fails to keep up with passenger demand. 

On Monday, analysts at Barclays said shortages were “playing havoc” with capacity planning at Germany’s Lufthansa. 

However, Airbus is not alone in facing supply chain challenges, as rival Boeing has also fallen short of its production targets. 

Safety concerns surrounding Boeing’s mid-air blowout in January have led to increased scrutiny of its operations, which has meant fewer jets being delivered. 

Rhys Jones, aviation editor at Head for Points, said: “Most airlines have set their summer schedules based on aircraft they already have. It’s hard to know how many airlines this will affect as we don’t know the delivery schedules.”

Shares across the aerospace industry dropped on Tuesday, with Rolls-Royce falling by 4pc.

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