Crisis at the plane-making giant Boeing has been the talk of investors over the first half of 2024 after the fuselage of an Alaska Airlines flight blew out dramatically in January. Amid a probe from the US Department of Justice, the departure of a host of top level C-suite executives and falling shares, eyes begun turning to Airbus. At points there was speculation that the long-held duopoly would finally be broken by Brazil’s Embraer.
Airbus shares rose in January and February but now it looks like the hype may have been overblown. In an update on Monday, the French manufacturer cut its 2024 delivery target from 800 to 770 and delayed increasing output of the A320 to 2027. The A320 is typically what competes with Boeing’s bestselling 737 Max.
Shares fell 11 per cent on Tuesday morning, dragging on Europe’s key exchanges. It meant Airbus shares are now down around six per cent in the year to date despite the problems at Boeing. Issues across the supply chain are proving too tough to handle.
Demand for planes is soaring as travel demand booms in the post-Covid era yet supply just can’t seem to keep pace. In the UK, some 312 commercial aircraft were delivered between January and April, 7.4 per cent lower year-on-year, according to the aerospace trade body ADS Group.
At the same time, the number of orders for new aircraft rose 64 per cent to 64, up from 38 a year earlier. “Demand is not the problem; quite the reverse. But if supply can’t keep pace and competition so c.
