Airbus SE (OTC:EADSF) CEO Christian Scherer says the aircraft manufacturer can reach its 2025 delivery target despite delays due to supply chain issues.
What Happened: The company, which is targeting 820 aircraft deliveries in 2025, is "cautiously hopeful" despite over 40 aircraft frames waiting to be fitted with engines, Reuters reported on Thursday.
"We haven’t changed our (delivery) guidance. I caution you not to extrapolate too much from monthly numbers. There is a gradual increase in output of engines that we get from CFM. The reason we have not changed our outlook for the year is because we believe that between now and the end of the year we will get the engines,” Scherer said.
The aircraft manufacturer sources its engines from CFM, which also supplies the engines that power Boeing Co.'s (NYSE:BA) 737 Max Aircraft.
Scherer says Airbus can meet its production target of 75 units of single-isle aircraft like the Airbus A320 by 2027. "We are just cruising past 60 (a month). We are trending in the right direction into the 60s," the report said.
Why It Matters: The news comes in as the global aircraft industry is dealing with supply chain constraints. Recently, Boeing replenished its stockpile of crucial nuts used in the production of its best-selling 737 Max aircraft.
Boeing has endured a tough spell in recent years over quality control and safety issues with its aircraft. Most recently, A London-bound Boeing 787 Dreamliner aircraft operated by Air India crashed moments after it took off from Ahmedabad in India’s Gujarat state on Thursday. The flight was said to be carrying over 240 people onboard.
The FAA, or Federal Aviation Administration, also recently proposed a flightworthiness report for the company after faulty bathroom latches resulted in a passenger being stuck inside the lavatory of a Boeing aircraft during a flight.
Airbus recently finalized a deal with Spirit Aerosystems Holdings Inc. (NYSE:SPR) to acquire assets of the company, including a facility in Kinston, North Carolina, as well as another facility in France. Spirit was recently acquired by Boeing.
Check out more of Benzinga's Future Of Mobility coverage by following this link
Read Next:
- Boeing 737 MAX Deliveries To China Restart After Month-Long Pause Amid Trade Tensions With US Over Trump’s Tariffs
Photo courtesy: Manuel Esteban / Shutterstock.com
