Airbus profits halved to €300 million in Q1, missing expectations, as the aerospace giant grappled with its lowest commercial aircraft deliveries since 2009. The Toulouse-based firm shipped just 114 jets, a 16% drop year-over-year, hampered by persistent delays in receiving engines for its A320 family from U.S. supplier Pratt & Whitney. Revenues edged to €12.7 billion, slightly above analyst estimates but trailing last year’s €13.5 billion. Adjusted EBIT fell sharply, reflecting a €2.5 billion cash outflow tied to reduced deliveries. Despite challenges, Airbus maintained its 2026 target of delivering 870 commercial planes, though analysts question feasibility given ongoing production defects and supply chain bottlenecks.

The crisis deepened as Pratt & Whitney prioritized engine repairs for existing airline fleets over new aircraft, citing a 2023 recall of hundreds of GTF engines due to manufacturing defects. This forced airlines to reschedule or ground planes, exacerbating Airbus’ delivery woes. The A320neo’s reliance on P&W’s engines—one of two critical power sources—has become a linchpin in Airbus’ struggles. Maintenance capacity strains further compound delays, with Faury acknowledging “extra pressures” on supply chains.

Airbus’ struggles highlight vulnerabilities in global aerospace partnerships, with the A320neo program at the epicenter. While the company downplays long-term risks, the engine supply chain crisis underscores systemic fragility. Investors may scrutinize whether the 2026 target accounts for unresolved P&W delays or optimistic assumptions. For now, Airbus’s ability to meet demand hinges on resolving these bottlenecks—a critical test for Europe’s largest planemaker.

Key takeaway: Engine supply chain failures, not just production, are crippling Airbus’ output. The €2.5 billion cash outflow and halved profits signal deeper systemic risks than initially reported, with ripple effects likely to shape aerospace investments and airline recovery trajectories in 2024.