Airbus, the world’s largest aerospace company, is enjoying a moment of strong demand for commercial jets and defense aircraft. Yet the group remains grappling with post-pandemic supply chain issues that have not yet allowed production to return to pre-pandemic rhythms.
The European leader, supported by the participation of Germany, France and Spain, has put a plan into action to raise production rates at its facilities. Even so, the company still cannot meet all customer needs as it looks to grow fleets. A spokesperson summarized the situation by noting that demand for Airbus airplanes now exceeds what can be produced. In his remarks to the press, Alberto Gutierrez, president of Airbus Spain, emphasized that the main challenge is the gap between demand and capacity. The priority remains to supply as many units as the market asks for.
The surge in travel following the pandemic, the expanding middle class in many regions, and the renewal cycle for airlines combined to drive robust demand for new aircraft. Gutierrez pointed out that demand is about 20 percent above current production capacity, and he confirmed that the supply chain still suffers from a shortage of essential components.
Production increase
European aviation faces an immense order book for commercial jets, with roughly 8,000 units in active demand. Airbus has delivered around 488 aircraft so far this year and has already committed its available production capacity through 2029. The company expanded production and opened a new line ahead of reaching its pre-pandemic output levels, with plans to push rates higher as lines ramp up further.
Airbus intends to grow the output of the A320 family, the single-aisle jets used for short and medium-haul flights, from 55 to 75 aircraft per month by the end of the decade. At the same time, it plans a higher cadence for larger models. Deliveries of the A350 are expected to rise from six to ten units per month in 2025, while the A330 should climb from three to four units per month next year.
As activity rebounds, Airbus has created close to 1,000 new jobs this year. The president of Airbus Spain confirmed ongoing workforce expansion, particularly among engineering roles, with additional hiring expected next year, though figures on new business volumes have not been disclosed yet.
European regulation
Across Europe, concerns have arisen in industry sectors about the ability to compete with peers in other regions, notably the United States and China, due in part to stricter regulatory regimes in certain areas.
Airbus remains in a long-running competition with Boeing for world leadership in aviation and has warned that over-regulation could erode European competitiveness. The message is clear: excessive rules could hamper growth, while the goal is to maintain a healthy balance that supports innovation and production efficiency.
Airbus has signaled a stance against banning short-haul flights in favor of trains, a topic that surfaces in policy discussions in several European countries. The company argues the solution lies in flying more sustainably and not in eliminating short hops entirely.
The company is actively adapting its aircraft to run on sustainable aviation fuel (SAF) and, in the longer term, hydrogen. The president notes that the aviation sector is headed toward sustainability. Airbus aircraft are already capable of flying with a 50 percent SAF blend alongside traditional kerosene, and future designs are expected to operate on green fuels alone. A key hurdle remains SAF production capacity and its higher cost relative to kerosene, which affects overall affordability and scale for airlines.