Airbus finds itself navigating a delicate balance between managing short-term challenges and positioning for long-term success. The French aerospace giant is implementing immediate cost-cutting measures, including a hiring freeze, to bolster profit margins for the current year. At the same time, it stands to gain from the difficulties faced by its primary competitor, Boeing.
Projections indicate that the number of airplanes operating globally will double over the next two decades. Airbus estimates that there will be just over 48,000 jets in the skies, a slight increase from its previous forecast. Given that Airbus and Boeing dominate the commercial airliner market, the anticipated growth spells significant opportunity for both companies.
However, Airbus has recently reduced its earnings outlook for the remainder of 2024 due to supply chain disruptions that have slowed new plane production. This step was taken even as Airbus seems well-positioned to capitalize on Boeing’s setbacks, such as a mid-air door plug incident that curtailed Boeing’s capacity.
The potential for a new competitor in the market remains uncertain. Brazil’s Embraer, known for manufacturing smaller planes, has been speculated to be developing larger aircraft to compete with Boeing and Airbus. However, no official confirmation of such plans has been announced.