Airbus stock drops as much 10% as it confirms a ‘quality issue’ in part of the best-selling A320’s supply chain
In a troubling development for Airbus, the company’s share price plummeted by as much as 10% on Monday morning following the announcement of a quality issue affecting a limited number of A320 aircraft. Airbus revealed that the problem lies with some metal panels produced by a supplier, although the exact number of planes impacted has not been disclosed. This announcement has raised concerns among financial analysts regarding Airbus’s ability to meet its ambitious delivery targets for the year, which aim for approximately 820 plane deliveries. The market’s reaction was swift; the stock, which opened at 201.15 euros, fell to as low as 183 euros before stabilizing at a 6.5% decrease as of 8:10 a.m. ET.
Airbus has responded to the situation by taking a conservative approach, initiating inspections of all potentially affected aircraft. The company reassured stakeholders that the source of the issue has been identified and contained, stating that all newly produced panels meet the required standards. Despite this proactive stance, the timing of the announcement is particularly critical, as Airbus typically ramps up production towards the end of the year to meet delivery goals. Forecast International, a market intelligence firm, has highlighted the need for Airbus to deliver over 160 planes in December alone to stay on track, a feat that would require record output. Notably, the A320 family is a cornerstone of Airbus’s production, representing the most popular aircraft in commercial aviation.
Compounding the challenges for Airbus, the company faced a software recall affecting around 6,000 A320 jets just over the weekend, due to concerns that intense solar radiation could corrupt vital flight control data. European regulators issued an emergency directive, but airlines were able to address the software issues quickly, minimizing potential disruptions during the busy Thanksgiving travel period. This series of setbacks has put additional pressure on Airbus, as the company navigates quality control challenges while striving to maintain its reputation and meet market expectations. As the year draws to a close, the aviation industry will be closely watching Airbus’s next steps and its ability to rebound from these recent hurdles.
Airbus confirmed Monday that the issue is affecting a small number of A320s.
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Airbus’ share price fell as much as 10% on Monday morning over concerns of an issue with some A320s.
It said it had identified an issue with some metal panels on a limited number of the best-selling jet.
This could affect the planemaker’s delivery targets — a key metric for financial analysts.
Airbus
‘s share price dropped as much as 10% on Monday morning after the planemaker found an issue with some components for its best-selling A320 aircraft.
In a statement, Airbus said a “supplier quality issue” affected “a limited number of A320 metal panels.”
Airbus didn’t disclose exactly how many planes were potentially affected.
“As it always does when faced with quality issues in its supply chain, Airbus is taking a conservative approach and is inspecting all aircraft potentially impacted — knowing that only a portion of them will need further action to be taken,” the statement continued.
“The source of the issue has been identified, contained, and all newly produced panels conform to all requirements.”
Airbus’s share price opened at 201.15 euros and fell as low as 183 euros after Reuters first reported on the issue.
However, it has pared some of the losses, and the stock was down 6.5% as of 8:10 a.m. ET.
The falling share price was likely triggered by market concerns that the issue could cause Airbus to struggle to meet its delivery targets — a key metric for financial analysts.
Airbus has said it’s targeting around 820 plane deliveries this year. Forecast International, a market intelligence firm, has estimated that it will need to deliver over 160 planes in December to meet that figure.
The planemaker typically has a big push at the end of the year, delivering 123 last December. However, it would require a record output this month to hit 820 deliveries for 2025.
The A320 family accounts for the bulk of Airbus’s production and is the
most popular plane
in commercial aviation.
Monday’s news follows a software recall affecting some
6,000 Airbus A320 jets
over the weekend.
European regulators issued an emergency directive after it was found that intense solar radiation could corrupt data that is critical for flight controls.
After some concerns that this could disrupt travel over the Thanksgiving holiday, many airlines were able to update their software overnight, which minimized the impact.
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