Coating flaw, delivery delay: What’s dragging Airbus shares down?

Airbus shares experienced a dip on Friday following the European aerospace manufacturer's disclosure of a quality flaw in the fuselage of multiple A321neo jets. The shares plummeted around 1.3%, trailing behind CAC 40 blue-chip stocks. Reuters cited industry sources, indicating that an improperly applied primer by an Italian subcontractor, TESI, operating under Leonardo, caused the issue. The primer was applied excessively thin to stringers in the forward fuselage of a group of A321neo jets, according to the report.

Acknowledging the problem after it was first flagged by The Air Current, Airbus reassured that safety was not compromised and maintained its delivery target of approximately 870 jets for 2026. This target contrasted with the 475 jets delivered between January and August. Airbus aims to reach record deliveries this year, targeting a production rate of 75 planes per month, up from the current 60.

A similar quality problem occurred in December, traced back to a Spanish supplier involving fuselage panels, which caused delivery delays and led Airbus to miss its 2025 delivery target. The latest issue is reportedly less severe. Airbus confirmed that a repair for the flaw has been identified, and airlines continue to accept delivery of the affected aircraft, often at concessions for future maintenance.

However, some analysts suggest that the defect-induced delay may not persist long-term, potentially impacting Airbus' ability to reach its 870 delivery target for the year.