Airbus has cut its profit and delivery forecasts for 2024 as it continues to struggle with supply chain issues and part shortages, causing shares to drop dramatically. 

The French manufacturer said that while demand for new aircraft remained high, supply chain troubles that appeared after the pandemic had worsened, with CEO Guillaume Faury revealing engine shortages to be the latest issue. 

As a result, Airbus has dropped its aircraft delivery expectations for 2024 from 800 planes to 770, while its adjusted EBIT is now predicted to reach €5.5bn ($5.9bn), down from its initial €7bn projections. 

Additionally, the company has pushed back its target of producing 75 A320 aircraft per month from 2026 to 2027, with production currently sitting at around 50 planes a month. 

Following Airbus’ publication of its new expectations, the company’s shares on the Paris stock exchange fell by 12% as the industry reacted to its concerns, which Faury admitted could last “for a while”. 

The company had previously warned of delivery delays at the beginning of the year, when some airlines were informed deliveries scheduled for late 2024 were being pushed back to 2025. 

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However, the latest news highlights the worsening situation for the aviation industry, with the sector already dealing with Boeing’s production woes as the US company remains under the supervision and restrictions of the Federal Aviation Administration (FAA). 

As well as engine shortages, Faury revealed during an investor call that cabin parts were also in high demand thanks to the large number of refurbishment programmes being carried out by airlines, meaning shipments for new aircraft are delayed. 

The news came amid reports that Boeing is nearing a deal to acquire part supplier Spirit AeroSystems in a bid to bring the manufacturer back in-house to address quality issues after the supplier was also targeted in a damning safety audit by the FAA

Airbus has previously confirmed that it was in “very early talks” about acquiring the relevant sections of Spirit for its supply chain, with the industry consensus seeing the French company forced to take on the supplier in the event of a Boeing acquisition.