CEO Faury said component snarls could last until the end of 2024 or even into 2025. — Bloomberg
PARIS: Airbus SE and Safran SA expect supply chain disruptions to continue at least into next year, complicating output for some of Europe’s biggest aerospace companies just as airlines are clamouring for new jets.
Airbus chief executive officer (CEO) Guillaume Faury, speaking with France Inter radio yesterday, said component snarls could last until the end of 2024 or even into 2025.
Safran, which provides engines for the European planemaker’s A320 family of single-aisle jets, said separately that securing a steady flow of parts and materials remains its No. 1 issue and that glitches might extend into 2024. Shares of both companies fell.
“The mismatch between demand and supply is the big problem we’re handling today,” Faury said. “Aeroplane parts, such as seats, are missing, equipment is missing, people are missing, semiconductors are missing, raw materials are missing.”
Global logistics are also still a problem, he said, adding that the industry will have had “five or six years of crisis in terms of production capacity” following the Covid-19 health crisis.
The component shortages have forced Airbus to slow an ambitious output increase for the cash-cow A320.
Sanctions tied to Russia’s invasion of Ukraine have also made it harder for Airbus, Boeing Co and their subcontractors to secure raw materials like titanium, driving up prices.
China’s zero-Covid policies further disrupted parts flows, and post-pandemic labour shortages have affected suppliers.
Safran is struggling to access materials including steel, aluminium, titanium and even resins, according to CEO Olivier Andries. — Bloomberg
