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Airbus Shares Dip Amid Fuselage Coating Flaw
Developing
In Short: Airbus shares fell Friday after the company acknowledged a quality flaw in the fuselage coating of hundreds of A321neo jets.
Airbus shares dropped around 1.3% on Friday, trailing the CAC 40 blue-chip stocks, following the company's acknowledgment of a quality flaw in the fuselage coating of hundreds of A321neo jets.
The European planemaker said the issue did not affect safety but caused delivery delays. Airbus aims to reach a production rate of 75 planes a month, up from the current rate of about 60, to meet its 2026 target of about 870 jet deliveries.
A repair for the flaw has been identified, and airlines are still accepting deliveries of affected aircraft, often in exchange for future maintenance concessions.
Airbus faced similar issues last December with fuselage panels from a Spanish supplier, leading to months of delivery delays and missing its original 2025 delivery target.
The company reiterated its full-year guidance from July 29, stating that its current position remains unchanged.
What's still developing
- Airbus is making an effort to hit record deliveries this year, trying to address prolonged pressure on supply chains since COVID-19.
- Airbus stated that the latest problem is less severe.
- “Our full-year guidance was formally stated during our first-half results on 29 July – this remains our current public position,” Reuters quoted an Airbus spokesperson as saying.