Airbus shares dropped sharply on Monday, falling over 9% in early trading, as the company faces dual operational challenges. A newly reported defect in fuselage panels on dozens of A320-family aircraft in production is delaying deliveries, while a separate software recall over the weekend temporarily grounded approximately 6,000 A320-family jets due to a solar radiation-related glitch.
The production issue comes as Airbus aims to deliver over 160 aircraft in December to meet its 2025 target of around 820 jets. November deliveries reached 72, bringing the year-to-date total to 657. Analysts from Citi and Morgan Stanley estimate the software recall could cost between €2.5-7.5 million for rollbacks, with potential hardware replacement costs reaching €50-100 million. Thales, the supplier of the affected Elevator Aileron Computers (ELAC), saw its shares decline nearly 3%.
Despite the setbacks, some analysts, including from RBC and Jefferies, suggest the financial impact may be manageable and the full-year delivery goal remains achievable. However, independent aviation analyst Rob Morris notes rising risk, projecting around 800 deliveries for the year.
