Airbus has nearly 40 jets just sitting around, fully built but unable to fly. You may ask why? Well, they’re waiting for engines. Specifically, CFM engines, which power most of Airbus’s popular A320neo planes. The company’s CEO says the situation is slowly getting better, but things are still behind schedule.
Christian Scherer, the head of Airbus’s jet-making business, says they’re still aiming to hit their 2025 goal of delivering 820 aircraft. And even though there have been month-on-month dips in delivery numbers, they haven’t changed that target, yet.
The real hiccup? Supply chains. While they’ve gotten better since the COVID chaos, CFM is still playing catch-up. It’s not just engines, though. Some wide-body jets are delayed because they don’t have lavatories yet. Yes, you read that right, bathroom delays are slowing down $100M+ planes.
New Orders Are Lining Up Fast
Despite the delays, airline demand for jets is still super strong. That’s the part investors should be watching. Big deals could be coming in hot.
AirAsia is reportedly in deep talks about buying at least 100 new planes — likely including the smaller A220, which would be a first for them. Over in Vietnam, VietJet is also eyeing a mega order of about 100 more A321neo aircraft. Both deals could be announced at the Paris Air Show next week, which is always a big stage for aviation announcements.
If those orders land, it means more future revenue for Airbus, even if they’re juggling supply chain messes today.
Airbus Could Take Off Soon
Right now, Airbus (EADSY) is trading around $40 a share and is up slightly despite the delivery delays. That’s because investors are betting on the long game. Once those engine shipments catch up, deliveries should jump, and with all these new orders in the pipeline, revenue could soar in 2026 and beyond.
Even with “gliders” sitting on the tarmac, Airbus is pushing toward building 75 A320neo jets a month by 2027. They’re already around 60 per month, close to pre-COVID levels.
So, if you’re looking at a stock with steady demand, a packed order book, and a few bumps that look more temporary than permanent, Airbus might be worth watching closely right now.
