Bloomberg reports that Airbus SE delivered approximately 63 aircraft in July—roughly 18% fewer than the same month last year—with engine shortages in its best-selling A320neo model hampering customer deliveries, according to people familiar with the matter. The world's largest planemaker has delivered approximately 370 aircraft in the first seven months of 2025—less than half its annual target. July delivery figures are preliminary information, and could shift slightly, according to people who spoke on condition of anonymity to avoid discussing confidential data. An Airbus spokeswoman refrained from commenting on the July total before official figures are published in early August. Deliveries are closely monitored by investors because they represent when airline customers pay the bulk of an aircraft order. Airbus Chief Executive Officer Guillaume Faury is maintaining the company's guidance around 820 full-year deliveries, saying supply chain issues will push a significant portion of shipments into the second half.
From a supply chain perspective, Airbus SE—registered in Leiden, Netherlands with operational headquarters in Toulouse, France—is Europe's largest planemaker. Guillaume Faury serves as CEO, succeeding EADS (European Aeronautic Defence and Space Company). The A320neo family (A319neo, A320neo, A321neo, A321XLR) is Airbus's best-selling narrow-body aircraft family and the direct competitor to Boeing 737 MAX. A320neo engines are supplied by one of two providers: CFM International (a joint venture of GE Aerospace and Safran) with the LEAP-1A, and Pratt & Whitney (RTX) with the PW1100G GTF (Geared Turbofan). The Pratt & Whitney GTF created a mandatory rapid turbine blade inspection and replacement requirement in 2023 due to metallurgical powder metal contamination—grounding thousands of aircraft—with RTX writing down $7 billion in losses. The CFM LEAP faces similar production challenges in nickel supply, carbon composite wing manufacturing, and issues comparable to those in the Trent XWB. RTX Corporation (formerly Raytheon Technologies) is led by Christopher Calio as President & CEO. GE Aerospace is led by Larry Culp as Chairman & CEO and is based in Cincinnati, Ohio.
From a supply chain perspective, global commercial aircraft manufacturing is divided between Airbus and Boeing in a "duopoly" market. Boeing—registered in Arlington, Virginia with production in Seattle, Washington/Renton and Charleston, South Carolina, headed by CEO Kelly Ortberg—has core products including 737 MAX, 787 Dreamliner, 777, 777X, and 767. The 737 MAX is operating under FAA production rate constraints following the Alaska Airlines door plug separation incident in January 2024. Comac (Commercial Aircraft Corporation of China), based in Shanghai, China, is entering the market with C919 (narrow-body) and C929 (wide-body) aircraft, though market share remains limited due to lack of global certification. Embraer (based in São José dos Campos, Brazil), Mitsubishi Aircraft, Sukhoi (SuperJet), Bombardier (formerly; CSeries sold to Airbus as A220), and ATR (an Airbus and Leonardo joint venture) are major regional and smaller aircraft manufacturers. Key Airbus Tier-1 suppliers include Spirit AeroSystems (being acquired by Boeing), Collins Aerospace (RTX), Honeywell, Liebherr-Aerospace, Safran, Thales, Latecoere, Premium Aerotec, and Stelia Aerospace.
From a supply chain perspective, Airbus's 2025 production challenges include: (1) P&W GTF engine inspection and repair queues; (2) CFM LEAP engine production capacity; (3) Spirit AeroSystems wing and aerostructure manufacturing (transition period following Boeing's acquisition); (4) titanium supply (reducing dependence on Russia's VSMPO-AVISMA); (5) cabin furnishings and seat delivery delays; and (6) workforce shortage—skilled labor constraints in aerospace manufacturing. The Airbus order book hit a record 8,500+ aircraft at the start of 2025, with delivery times extending to 8-10 years. IATA (International Air Transport Association), led by Director General Willie Walsh, reports that the global airline market will carry 4.5 billion passengers in 2025—a record level. Boeing's 737 MAX production challenges are creating an opportunity for Airbus to gain market share, but engine supply bottlenecks are preventing Airbus from fully capitalizing on this opportunity. Ultimately, Airbus's July 2025 delivery decline is a direct indicator of structural engine and aerostructure supply constraints in the global aviation supply chain—viewed as a sector-wide bottleneck extending through 2026-2027.
Key Notes:
1. Airbus delivered 63 aircraft in July 2025—18% fewer on an annual basis.
2. A320neo engine constraints are the main delivery bottleneck.
3. Airbus is maintaining its 2025 annual target of 820 deliveries—pushed into H2.
4. Pratt & Whitney GTF and CFM LEAP are the primary engine suppliers.
5. Guillaume Faury, Airbus CEO, states that supply chain challenges will push deliveries into H2.
