Airbus finds itself balancing between immediate cost-cutting measures and the potential for future growth. The French aircraft manufacturer is actively reducing expenses and implementing a hiring freeze to maintain profit margins for this year. Despite these short-term strategies, Airbus stands to gain from the challenges faced by its main competitor, Boeing.
According to Reuters, the global fleet of airplanes is expected to double over the next two decades, with the number of jets forecasted to reach just over 48,000. Given that Airbus and Boeing dominate the commercial airliner production market, this projected growth bodes well for Airbus.
In recent developments, Airbus reported to investors that supply chain issues have disrupted its plane production, leading to a lowered earnings forecast for the remainder of 2024. This comes in the wake of Boeing’s reduced capacity following an incident involving a mid-air door plug blowout earlier this year, an issue that Airbus is well-positioned to capitalize on.
It remains uncertain whether Airbus’s strategic adjustments will create opportunities for new competitors in the planemaking industry. Brazil’s Embraer, known for its smaller aircraft, has been speculated to be developing larger planes that could rival those of Boeing and Airbus, although no official plans have been disclosed yet.