Can CFM Keep Up? Airbus Faces Supply Chain Challenges

A Tight but Improving Situation for Airbus and Its Engines

Guillaume Faury, the CEO of Airbus, has recently expressed cautious optimism about resolving engine supply issues that have disrupted the company’s aircraft deliveries this year. Speaking to Reuters, he stated that CFM International, Airbus’s main engine supplier, should manage to provide enough units to meet the company’s needs. However, he emphasized that the situation remains “very tight.”

CFM International, jointly owned by GE Aerospace and Safran, is one of the world’s largest engine manufacturers. Over the past months, a shortage of their engines has slowed Airbus deliveries, forcing the company to revise its annual production targets downward in July.

As of now, Airbus needs to deliver about 200 aircraft by year’s end to meet its target

of 770 deliveries in 2024. Some analysts believe this goal is becoming increasingly challenging, if not out of reach.

When asked whether CFM could supply enough engines to support Airbus’s year-end delivery goals, Faury responded cautiously: “In the short term, it’s very tight. I won’t be sure until the end of November.” He added that the shortfall might involve only a few engines rather than dozens, indicating a relatively narrow margin of error.

So far, CFM has not commented on the matter.

Summer Tensions Easing Toward a Calmer Climate

Faury’s measured remarks reflect an improvement compared to last summer when tensions with CFM were visibly higher. According to industry sources, behind-the-scenes negotiations have helped secure better engine allocations, easing friction between the two partners.

CFM plays a critical role for Airbus. For the past 50 years, it has been one of two suppliers for the engines powering the A320neo family, Airbus’s best-selling aircraft. At the same time, CFM is the sole engine provider for Boeing’s 737 MAX, adding further pressure to its production lines.

Like other engine manufacturers, CFM faces the dual challenge of producing engines for new aircraft while servicing existing fleets in repair shops worldwide. These challenges have been compounded by supply chain disruptions involving key subcontractors.

These difficulties prompted Airbus to lower its initial 2024 delivery target from 800 to “about” 770 aircraft. At the time, Faury voiced his frustration, saying in July that he had been “blindsided” by issues at CFM.

Additional Challenges but a Softer Tone

Speaking in Brussels on Tuesday during an industry event, Faury struck a more conciliatory tone. He acknowledged CFM’s efforts to cope with difficult circumstances, including recent hurricane damage in the U.S. that further strained supply chains. “They are serving us reasonably well given these challenges,” he noted.

At this time of year, such comments are scrutinized closely as they reflect the level of confidence executives have in meeting their targets. However, many analysts warn that the broader supply chain remains fragile, with potential surprises not only for engines but also for other critical components like seats and landing gear.

Airbus delivered 62 aircraft in October, bringing its total to 559 deliveries over the first 10 months of the year. However, it will need to significantly ramp up production in November and December to reach its goal of 770 deliveries. Some observers suggest that Airbus may settle for around 750 deliveries, leveraging some flexibility in its target wording to avoid a formal downward revision.

A Risky Bet in a Complex Environment

The current situation underscores how dependent Airbus—and its competitor Boeing—remains on its supply chain. While Boeing is gradually recovering from a series of internal crises, Airbus faces structural challenges that affect the entire aerospace industry.

Since the pandemic, the sector has struggled with chronic shortages of labor and parts, which impact manufacturers and their suppliers alike. These constraints make any production ramp-up particularly difficult.

Despite these obstacles, Airbus hopes its partners, particularly CFM, can deliver the necessary push for a year-end sprint. The question remains whether this ambition will be realized or if last-minute adjustments will be needed.