Airbus is navigating a challenging balance between its short-term needs and long-term aspirations. The French aerospace manufacturer is currently implementing cost-cutting measures but stands to benefit from issues facing its key competitor, Boeing.
Reuters reports that Airbus anticipates the number of airplanes in operation worldwide to double within the next two decades. The company estimates there will be over 48,000 jets in service, slightly up from last year’s projection. As part of a global duopoly with Boeing in the commercial airliner market, Airbus is well-positioned to capitalize on this growth.
Despite this optimistic outlook, Airbus is taking steps to manage costs, including a hiring freeze aimed at maintaining profit margins for this year. The company has adjusted its earnings forecast for the remainder of 2024 due to supply chain issues that have disrupted new plane production. This comes even as Airbus has the opportunity to capture business left by Boeing’s reduced capacity following a mid-air door plug malfunction earlier this year.
It is uncertain whether Airbus’s current strategy will allow space for a new competitor to emerge in the market. Rumors suggest that Brazil’s Embraer, known for its smaller aircraft, might be developing larger planes to compete with Airbus and Boeing, though no official plans have been confirmed.