Airbus’s Strategic Plans for 2025
In 2025, Airbus is poised to leverage its success in widebody aircraft, particularly with the A350 series which has seen robust customer growth, including new and returning clients such as EVA Air, IndiGo, and Korean Air. The A350-1000, being the most substantial passenger aircraft currently in production, stands to gain significantly, especially with competitors like Boeing’s 777X facing delays.
Alongside the A350, Airbus has introduced the A350F, a freighter variant, which, although not entering service until 2026, is expected to begin flight tests in the latter half of 2025. This development reflects Airbus’s strategic push into the cargo aircraft sector, meeting the increasing demand for air freight.
The A330neo continues to compete effectively with Boeing’s Dreamliner, indicated by its healthy order book which includes new clients like Vietjet and Cathay, as well as additional orders from Virgin Atlantic and Starlux. Airbus anticipates further interest in this model throughout 2025.
The Rising Star: The A321XLR
The A321XLR, a ‘game-changing’ long-range narrowbody, has been a focal point for Airbus following its initial delivery to Iberia. This aircraft is set to be a cornerstone in Airbus’s strategy due to its unique market position that combines efficiency with extended range, potentially attracting more orders as it demonstrates its capabilities in service.
The A321neo, in particular, has been a standout in the single-aisle market, capturing 85% of Airbus’s single-aisle orders in 2024. It’s popularity and the lack of a direct competitor from Boeing positions it for continued dominance in this segment.
Production Ramp-Up Initiatives
Addressing production rates, Airbus has revised its target of achieving 75 A320neo family aircraft per month from 2026 to 2027. However, efforts to increase the production rate in 2025 will be critical to meet this future target. Despite challenges, Airbus managed to maintain a production rate of approximately 46-47 A320 family aircraft per month by the end of 2024.
For widebody aircraft, particularly the A350, Airbus aims to increase its production to 10 units per month by 2026, maintaining pre-pandemic levels. The current production has been steady at six units per month, with a potential increase to eight in 2025, contingent on resolving supply chain issues.
The A220 is another crucial model, with Airbus targeting a production rate of 14 aircraft per month by 2026. As of November 2024, production has seen a 12% increase year-over-year, although it’s still around six aircraft per month. Production enhancements at Mirabel and Mobile facilities are essential for reaching this target.
Anticipated Challenges in 2025
Despite a strong performance in 2024, Airbus faces ongoing challenges that might extend into 2025. Supply chain disruptions have forced Airbus to adjust its delivery forecasts and scale down production targets temporarily.
Geopolitical tensions also pose a significant risk, potentially affecting new orders and partnerships, especially in regions experiencing trade disputes or political instability.
Lastly, the recall of Pratt & Whitney’s GTF engines, which power many Airbus models, continues to impact delivery schedules and fleet availability. This issue underscores the broader challenges Airbus faces in the supply chain, expected to persist into 2025.