Airbus Navigates Delivery Challenges Amid Strong Order Inflow

Airbus August Deliveries and Orders Overview

European jet maker Airbus SE (OTCPK:EADSF, OTCPK:EADSY) delivered 61 airplanes in August 2025, contributing to a year-to-date total of 434 jets. This performance, while showing year-over-year improvement for August, places the company on a trajectory requiring a substantial acceleration in deliveries to meet its annual target of 820 aircraft for 2025. Concurrently, Airbus secured 99 new orders in August, predominantly from lessor Avolon, totaling a net order value of $7.4 billion for the month.

Detailed Performance Metrics

August deliveries included seven Airbus A220s (all -300 variants), 47 Airbus A320neo airplanes (comprising three A319neos, 12 A320neos, and 32 Airbus A321neo), two Airbus A330-900 airplanes, and five A350-900 airplanes (two -900 models and three -1000 models). The year-to-date delivery count of 434 jets, valued at $27.5 billion, is slightly below the 447 deliveries reported in the same period last year, which were valued at $28.7 billion.

New orders were robust, with Avolon placing an order for 90 airplanes (75 Airbus A321neo and 15 Airbus A330-900neos), which became unconditional on August 11, 2025. Two private customers ordered two Airbus A320neo airplanes, and an undisclosed customer ordered seven Airbus A350-1000s. These figures represent a significant increase from the seven orders booked in July, and the book-to-bill ratio year-to-date stands at 1.4x in units and 1.8x in value.

Market Response and Operational Challenges

Despite strong order inflows and a robust stock performance—with shares gaining nearly 60% over the past 12 months—Airbus faces an acute challenge in ramping up production to meet its ambitious annual delivery target. To achieve 820 deliveries, Airbus must deliver just under 100 airplanes per month for the remaining four months of the year, a significant increase from the current average of approximately 61 units per month.

The primary constraint remains engine supply issues. Airbus currently has approximately 60 built airplanes awaiting engine deliveries, which, if resolved, would reduce the monthly assembly line requirement to around 80 airplanes. Guillaume Faury, Airbus's CEO, has acknowledged that achieving the 820-plane target is contingent on receiving these difficult-to-source engines. This situation highlights the vulnerability of the aerospace manufacturing sector to supply chain bottlenecks, particularly concerning critical components.

Broader Industry Context and Financial Health

Airbus maintains a substantial backlog of over 8,700 airplanes, indicating strong long-term demand for its products, particularly the fuel-efficient A220/A320 families (82% of the backlog). This backlog is expected to underpin higher production rates once supply chain constraints, especially engine-related issues, are resolved. Lessors like Avolon are considered "excellent barometers of the aircraft market," and their substantial orders reflect strong confidence in long-term demand for new aircraft and fleet renewal. Avolon's CEO, Andy Cronin, emphasized that their recent order reflects "strong confidence in the long-term demand for new aircraft." Both the A321neo and A330neo are experiencing high demand due to their versatility, cost-efficiency, and ability to optimize capacity, suggesting a gradual rebound in long-haul travel.

Financially, Airbus reported a strong Q2 2025, with EBIT Adjusted increasing by 94% year-on-year to €1,580 million. Net income reached €732 million, and earnings per share surged 221% to €0.93. The company projects a free cash flow before customer financing of €4.5 billion for 2025. To further mitigate supply chain risks and accelerate production, Airbus is strategically acquiring Spirit AeroSystems' work packages and investing in key sites, along with planning a China A320neo line.

Outlook and Key Factors to Monitor

The coming months will be critical for Airbus as it endeavors to accelerate deliveries. The resolution of engine supply issues and the effective scaling of production remain paramount for meeting its annual target and sustaining investor confidence. While the substantial backlog provides a buffer and signals future revenue potential, consistent delivery performance will be key. Investors will closely monitor monthly delivery figures and any updates regarding supply chain improvements. The continued strong demand for fuel-efficient aircraft, driven by rising fuel costs and sustainability pressures, provides a positive long-term outlook for the aviation sector, though geopolitical uncertainties and ongoing supply chain hurdles continue to be influential factors.