Wedoany.com Report-Oct. 28, Airbus (AIR.PA) has postponed the assembly of some A220 jets this year and next, and may only achieve its 2026 production target of 14 A220s per month in the final weeks of that year, according to three industry sources on Monday. The company had previously stated it would reach this goal at some point in 2026, but supply issues mean the milestone is now expected only by December 2026, leaving little room for further delays.

The logo of Airbus is pictured outside the Airbus facility in Saint-Nazaire, France, November 7, 2023.

On its path toward the goal, Airbus has internally set an intermediate target of 12 jets per month by mid-2026, compared with the current rate of seven to eight per month. However, factories in the United States and Canada continue to face supply chain difficulties, which may affect the timeline. A spokesperson for Airbus Canada referred to the existing production goals and declined further comment before the company’s earnings announcement on Wednesday, as well as on internal briefings.

Airbus took control of the A220 program in 2018 from Canadian planemaker Bombardier (BBDb.TO). The A220, which seats 110 to 130 passengers, has seen steady sales but remains unprofitable. Increasing production is essential to lowering unit costs since the model shares few components with other Airbus aircraft. Sources said recent delays involve several aircraft removed from the 2025 schedule and nearly 10 from 2026.

These setbacks follow the Quebec government’s C$400 million write-down of its 25% stake in the A220 program, while Airbus holds the remaining 75%. Quebec Economy Minister Christine Frechette attributed the losses to trade tensions and continued strain on supply chains.

At Airbus A220 plants in Montreal, Canada, and Mobile, Alabama, workers are contending with shortages of parts, including engines, as well as assembly line errors, the sources said. Last year, Airbus reportedly expedited the delivery of wings for the A220 by airlifting parts from Belfast, Northern Ireland. One of the sources added that some delays are still due to wing shortages. Airbus has agreed to assume responsibility for wing production from Spirit AeroSystems (SPR.N) as part of a joint rescue plan with Boeing for the supplier.

While adjusting A220 production plans over the next 14 months, Airbus is taking measures to maintain delivery schedules. Two of the sources said the company is prioritizing the protection of near-term deliveries. Former Airbus Canada chief Benoit Schultz, in a September address, urged workers to meet an internal target of 100 A220 deliveries in 2025, a one-third increase from the current pace. To help achieve this, some workers in Quebec have been temporarily reassigned from assembly tasks to support final delivery operations.

Airbus reported 62 A220 deliveries during the first nine months of the year, though it does not disclose delivery targets by model within its total annual goal of 820 aircraft. Despite production challenges, the company remains focused on stabilizing output and meeting its long-term objectives for the A220 program.