Airbus slows race: technical problems and delays in its challenge to Boeing in the global aircraft market

It was supposed to be a fabulous year for the global aeronautics giant, Airbus, but instead something cracked and in recent weeks the wind changed: first the software update of 6 thousand aircraft forsolar radiation risks, then the fuselage panel defects for another 600 A320s. A series of hurdles halted their progress to the point that the company was forced to revise its year-end delivery targets, the value followed by the market because that is when the payment for the order is finalised.

Until now, the two groups, Boeing and Airbus, have dominated the civil aviation sector, sharing 50% of the market - with the Americans dominating in long-haul aircraft and the Europeans in short- and medium-haul - leaving a small share to the Brazilian Embrair specialising in regional aircraft, 70-150 seats. For the Toulouse-based manufacturer this could have been the moment to make the big leap and rise to 60% or 70% and relegate the American competitor to second place for good. But it did not happen. Airbus is certainly in a better financial and commercial situation than Boeing, but some signs of sagging have been perceived, as indicated by the stock market prices: the Airbus share, which has risen 26.7% since the beginning of the year, has lost 7.6% in the last month. However, analysts are not unbalanced and merely say 'we have to see how the inspections unfold and what the timing will be', explains Bernstein's analyst in a note, and especially whether there will be any impact on deliveries in the long term. Some go so far as to say that perhaps Airbus has reached the limit of its production capacity to guarantee the quality and safety that such a sensitive sector requires.

The transport sector shows no signs of slowing down. Iata the international airline association forecasts total revenues of $1,053 billion in 2026, up 4.5% from last year's figure of $1,008 billion.008 billion, In the stock market, airline stocks are on the upswing: in the last 12 months, the main European carriers have posted double-digit performances from Germany's Lufthansa (+36%), Air France-KLM (+36%), IAG (+34%), Ryanair (+56%), while low cost easyJet lost 12% and Wizz Air 15%.

The problem continues to be the limited availability of aircraft, which Iata estimates at 5,300 aircraft due to the slowdown in production, with an order book that has exceeded 17,000 aircraft, a number equal to almost 60% of the active fleet and equivalent to almost 12 years of current production capacity. This shortage of aircraft is having an impact on carriers due to the higher costs of more expensive leased aircraft, reduced scheduling flexibility for airlines, and increased reliance on sub-optimal aircraft types, costs that Iata estimates at $11 billion to airlines. Such is the irritation on the part of Iata that director general Willie Walsh has threatened to take legal action against engine manufacturers, the main suspects for the delays in engine delivery.

The demand is clearly there, but Airbus is not making progress. There are a few explanations for this shaky performance. The first is that Boeing is recovering after two terrible years, plagued by a series of safety and production problems. It all started in January 2024 when the door of an Alaska Airlines Boeing 737 flew off during take-off and continued this year with the Air India crash of a Boeing 787 that crashed on take-off killing all those on board. Despite a change in management, the once iconic American business group is teetering from one crisis to another. Last month it reported a $4.9 billion debt due to delays in the certification of its new long-haul model the 777X, with deliveries now delayed until 2027, seven years late.