Airbus finds itself in a challenging position as it navigates both its short-term cost-cutting measures and its long-term growth prospects. The French aircraft manufacturer is taking immediate actions to reduce expenses but stands to gain from the mistakes of its main competitor, Boeing.
According to Reuters, Airbus expects the number of airplanes globally to double over the next two decades, forecasting just over 48,000 jets in the skies. This is a slight increase from its previous estimate. Given that Airbus and Boeing dominate the commercial airliner industry, Airbus is poised to benefit significantly from this growth.
However, Airbus is also focusing on immediate concerns. Reuters recently reported that the company is implementing cost-cutting measures and a hiring freeze to support its profit margins this year. Despite being well-positioned to fill the gap left by Boeing’s reduced capacity following a mid-air door plug failure, Airbus told investors last month that it is lowering its earnings expectations for the remainder of 2024 due to supply chain issues affecting new plane production.
The potential for another competitor to enter the market remains uncertain. Brazil’s Embraer, known for its smaller aircraft, is rumored to be developing larger planes that could challenge both Boeing and Airbus, although these plans have not been confirmed.