Airbus has decided to cut costs by 10% across the company due to global economic pressures and ongoing supply chain problems.
Airbus has launched a new cost-reduction program amid global economic uncertainty and deepening supply chain issues in the aviation industry. According to a Reuters exclusive report, Airbus ordered approximately 10% cuts in non-production spending covering both its aircraft manufacturing division and headquarters operations.
According to sources, the new savings plan, which has been in effect for several weeks, will not directly affect production processes. The new cost-control measure implemented by Airbus comes in addition to the company’s “LEAD” efficiency and expense reduction program launched in 2024.
Airbus, headquartered in Toulouse, declined to make an official statement on the matter.
Global Crises Are Pressuring Aviation Giants
Airbus’ latest cost-saving decision comes at a time when energy prices are rising, geopolitical risks are increasing, and global supply chains are becoming more fragile. Conflicts centered around Iran and global trade tensions are deepening cost pressures, particularly in the industrial and aviation sectors.
According to Reuters’ analysis based on Airbus financial data from the United States, Europe, and Asia, global companies are facing at least $25 billion in additional burdens due to rising energy costs and disrupted supply chains.
Last month, Airbus CEO Guillaume Faury stated in an assessment to investors that the company had not experienced any direct production disruptions caused by wars, but they were concerned that rising oil prices could increase the costs of derivative products.
A320 Crisis Put Pressure on Financial Planning
Airbus’ operational pressures have not been limited to global cost increases. Structural panel issues that emerged last year in the A320 family — one of Airbus’ most important narrow-body aircraft programs — caused serious disruptions in delivery planning.
Airbus management was forced to revise the production schedule, particularly due to defective panels supplied by a Spanish supplier. Airbus aims to deliver most of the affected aircraft by the end of June.
Pressure From Pratt & Whitney and Spirit AeroSystems Continues
The ongoing engine supply dispute with Pratt & Whitney is also increasing pressure on Airbus’ delivery processes. Sources say uncertainties remain regarding the number of engines required for deliveries.
Meanwhile, the integration process of certain production units from bankrupt Spirit AeroSystems into Airbus is creating operational difficulties, especially within the A350 program.
Airbus’ 870 Delivery Target Under Pressure
Aircraft deliveries, which are critically important for the company’s profitability, fell by 16% in the first quarter of the year. Although the contraction eased to 6% as of April, industry sources believe reaching year-end targets is becoming increasingly difficult.
Airbus plans to increase deliveries by approximately 10% in 2025, reaching a total of 870 aircraft. According to data shared by aviation analytics company Cirium, Airbus has delivered around 27 aircraft so far in May.
Aviation analyst Rob Morris stated that the current delivery pace does not show sufficient momentum to meet targets, saying, “I don’t see any significant acceleration. The 870 delivery target is placing serious pressure on the system.”
