Airbus is currently navigating a challenging period as it balances immediate cost-cutting measures with preparations for future growth. The French aircraft manufacturer is actively managing expenses while also standing to gain from problems faced by its main rival, Boeing.
According to reports, the global fleet of airplanes is expected to double over the next 20 years. Airbus projects that there will be over 48,000 jets in operation, a slight increase from previous estimates. As one half of the global duopoly in commercial airplane manufacturing, alongside Boeing, Airbus is well-positioned to capitalize on this expansion.
In contrast, Airbus is also taking steps to increase its profitability by cutting costs and instituting a hiring freeze. Despite being in a prime position to fill the gap left by Boeing’s recent issues, Airbus has lowered its earnings forecast for the remainder of 2024 due to supply chain challenges affecting new plane production.
The question remains whether these short-term measures will allow another competitor to capture some of the market. Brazil’s Embraer, known for producing smaller aircraft, is rumored to be developing larger planes that could compete with Airbus and Boeing, although no official confirmation has been made.