MRO & Manufacturing
Airbus Faces Engine Supply Delays Impacting 60 Aircraft Backlog in 2025
Airbus struggles with engine supply delays from CFM and Pratt & Whitney, causing a backlog of 60 aircraft and impacting 2025 delivery goals.
The European aerospace giant Airbus is currently grappling with a significant operational bottleneck: a backlog of 60 completed commercial aircraft awaiting engine installations. This delay stems from supply chain disruptions involving both of its primary engine suppliers, CFM International and Pratt & Whitney. The issue underscores vulnerabilities in the global aerospace supply chain and poses a challenge to Airbus’s ambitious delivery targets for 2025.
While Airbus reported a strong financial performance in the first half of 2025, including an 85% increase in profits, the inability to deliver completed aircraft is exerting pressure on its cash flow and production planning. The crisis highlights the complexities of modern aircraft manufacturing and the interdependencies that can lead to large-scale disruptions when any one component, such as engines, is delayed.
This article explores the background of the supply chain challenges, the specifics of the current crisis, its financial implications, and the broader industry-wide consequences. It also examines how Airbus and its engine suppliers are responding to the situation and what lies ahead for the aerospace sector.
Airbus’s reliance on two main engine suppliers for its A320neo family, CFM International (LEAP-1A engines) and Pratt & Whitney (PW1100G engines), was initially designed to reduce risk through diversification. However, the dual-supplier model has introduced new complications, particularly when both suppliers face simultaneous production issues.
The COVID-19 pandemic created long-lasting disruptions in the global aerospace supply chain, from raw materials to skilled labor shortages. As the industry rebounded, demand for new aircraft surged, putting additional strain on engine manufacturers already struggling to meet production schedules.
The Pratt & Whitney PW1000G engine family, introduced in 2016, has faced a series of technical challenges including rotor bow and knife edge seal problems. These issues required engineering fixes and retrofitting, further complicating the production timeline. CFM International has also faced pandemic-related disruptions, although it reported a 10% increase in LEAP engine deliveries in the first half of 2025.
Airbus’s strategic decision to use two engine suppliers was meant to provide flexibility and reduce dependency. However, when both CFM and Pratt & Whitney encountered delays, the redundancy became a liability. The backlog of 60 aircraft includes models requiring engines from both manufacturers, increasing the complexity of resolving the issue.
Historically, the LEAP-1A engine has been a workhorse for Airbus, offering fuel efficiency and compliance with environmental regulations. Meanwhile, the PW1100G’s geared turbofan design offered similar benefits but came with more intricate manufacturing requirements. Both engines are critical to Airbus’s narrow-body aircraft lineup, particularly the A320neo, which is central to its commercial strategy. In recent years, both engine programs have made progress in resolving early-stage issues. However, the current crisis suggests that scaling production to meet post-pandemic demand remains a formidable challenge, particularly when dealing with advanced engine architectures and global supply constraints.
“The dual-supplier model, once seen as a buffer against disruption, has ironically become a bottleneck when both suppliers falter simultaneously.” — Industry Analyst
Airbus CEO Guillaume Faury confirmed that as of June 2025, 60 aircraft were parked outside the factory awaiting engine installations. This figure marks a sharp increase from 17 in April and around 40 in early June, reflecting the accelerating nature of the supply chain crisis.
These aircraft, often referred to as “gliders” in industry jargon, cannot be delivered to customers until engines are installed. Each undelivered aircraft represents millions of dollars in tied-up capital and lost revenue. The situation is particularly problematic given Airbus’s goal of delivering 820 aircraft in 2025, a target now described by Faury as “not a walk in the park.”
The backlog includes both A320neo and A220 jets. While the majority require CFM’s LEAP-1A engines, recent delays from Pratt & Whitney have compounded the problem. Managing two sets of supply chain issues simultaneously adds logistical and operational strain to Airbus’s production lines.
Despite these operational setbacks, Airbus posted strong financial results for the first half of 2025. Profits rose 85% year-over-year to $1.7 billion, and revenues increased 3% to $33 billion. Adjusted EBIT also climbed 58% to $2.5 billion, reflecting pricing power and operational efficiency.
However, the engine delays have significantly impacted cash flow. Airbus reported negative free cash flow of €1.6 billion ($1.8 billion) in H1 2025, compared to a positive €2 billion in the same period last year. This swing highlights the financial burden of holding completed but undeliverable aircraft.
The company’s order backlog remains strong, with 402 net orders in the first half of the year and a total backlog of 8,754 aircraft. This suggests that customer demand is robust, but delivery delays could strain customer relationships and future sales if not resolved promptly.
CFM International has faced multiple supply chain issues, including material shortages and labor strikes. However, it has made progress, delivering 729 LEAP engines in H1 2025, including 410 in Q2, a 30% increase from Q1. Safran, CFM’s French partner, has raised its full-year forecast, expecting a 15–20% increase in engine deliveries. Pratt & Whitney’s challenges are more technical in nature. The PW1100G has faced issues with powdered metal contamination and design flaws in the knife edge seals. These problems have required extensive inspections and component replacements, slowing production and affecting delivery timelines.
Both companies have launched recovery programs, investing in capacity expansion and quality control. However, the lead times involved in engine manufacturing mean that these efforts will take time to yield results. In the interim, Airbus must manage production schedules and customer expectations with limited engine availability.
The engine supply delays facing Airbus underscore the fragility of global aerospace supply chains. With 60 aircraft awaiting engines, the company is navigating a complex web of operational, financial, and reputational challenges. While strong financial results and a robust order book offer some cushion, the immediate focus remains on resolving supplier issues to meet delivery targets.
Looking ahead, Airbus and its suppliers must continue investing in supply chain resilience and production capacity. The situation also raises broader questions about industry dependence on a limited number of engine manufacturers and the need for more diversified sourcing strategies. How Airbus and its partners navigate the remainder of 2025 will be a critical test of the industry’s ability to adapt to post-pandemic realities.
What is causing the delay in Airbus aircraft deliveries? How many aircraft are currently awaiting engines? Which Airbus models are affected? Is Airbus still profitable despite the delays? When is the issue expected to be resolved?
Airbus Engine Supply Crisis Deepens as Aircraft Backlog Reaches 60 Units Amid Dual Supplier Delays
Background and Historical Context of Airbus Engine Supply Challenges
The Dual Supplier Dilemma
Sixty Aircraft Awaiting Engines: The Current Crisis
Financial Ramifications
CFM and Pratt & Whitney: Supplier Challenges
Conclusion
FAQ
The delays are due to engine supply shortages from both CFM International and Pratt & Whitney, affecting Airbus’s ability to deliver completed aircraft.
As of June 2025, Airbus reported that 60 aircraft were completed but undeliverable due to missing engines.
The affected models include the A320neo and A220, both of which rely on engines from CFM and Pratt & Whitney.
Yes, Airbus reported an 85% increase in profits in the first half of 2025, although cash flow has been negatively impacted by the delays.
Airbus aims to clear the backlog by the end of 2025, but this depends on improvements in engine delivery from suppliers.
Sources
Photo Credit: World Flying Community
MRO & Manufacturing
Korean Air and Busan Invest 200 Billion Won in Aerospace Facility
Korean Air and Busan commit 200 billion won to build a new aerospace plant for UAVs, aircraft parts, and military upgrades in Busan.
This article summarizes reporting by ChosunBiz. The original report may be subject to premium access; this article summarizes publicly available elements and public remarks.
Korean Air Lines and the City of Busan have officially signed a Memorandum of Understanding (MOU) for a 200 billion won (approximately $150 million USD) investment to construct a new drone and aerospace manufacturing facility. According to reporting by ChosunBiz on March 30, 2026, this agreement marks the largest aerospace investment the city has ever attracted.
The new plant will be situated within Korean Air’s existing Busan Tech Center in the Gangseo District. It is designed to serve as a multipurpose hub, focusing on next-generation commercial aircraft components, military aircraft upgrades, and advanced unmanned aerial vehicles (UAVs).
This development aligns with Busan’s strategic vision to establish a “Future Aviation Cluster” connected to the upcoming Gadeokdo New Airport, positioning the region as a central player in the global aerospace supply chain.
The planned facility will significantly expand Korean Air’s manufacturing footprint. Based on industry research data, the new plant will feature a total floor area of 52,892 square meters and will be constructed on a 36,363-square-meter idle site within the current Tech Center grounds. The existing Busan Tech Center, established in 1976, already covers an expansive 717,359 square meters and is recognized as Asia’s largest military aircraft maintenance facility.
The multipurpose plant will focus on three primary operational pillars: manufacturing AI-powered UAVs, producing structural components for next-generation civil aircraft, and conducting maintenance, repair, overhaul, and upgrade (MROU) services for military aircraft.
The signing ceremony was attended by key regional and corporate leaders, including Busan Mayor Park Heong-joon and Korean Air Lines Vice Chairman and CEO Woo Kee-Hong. During the event, corporate leadership emphasized the forward-looking nature of the project.
“This investment is a strategic decision to lead the global unmanned aircraft market and secure capabilities for next-generation aircraft manufacturing,” stated Woo Kee-Hong, Vice Chairman and CEO of Korean Air Lines.
Mayor Park emphasized the city’s commitment to the project, noting in public remarks that Busan will provide administrative and financial backing to ensure Korean Air serves as the anchor for the region’s future aviation cluster. While globally recognized as a commercial passenger airline, Korean Air operates as South Korea’s only fully integrated aerospace company. According to industry background data, the company has been manufacturing aircraft parts since 1977, supplying major aerospace firms like Boeing and Airbus with components such as 787 Dreamliner parts and A350 cargo doors.
The Aerospace Business Division has recently proven to be a highly profitable segment for the airline. This success is partly driven by substantial defense contracts, including a reported 1 trillion won project to upgrade UH-60 Black Hawk helicopters for the South Korean military.
Korean Air is aggressively expanding its footprint in the drone and artificial intelligence sectors. At the “Drone Show Korea 2026” held in Busan in late February, the company unveiled South Korea’s first physical AI-powered subsonic UAV, developed alongside U.S. defense technology firm Anduril Industries. Furthermore, the airline has made strategic investments in Pablo Air, a domestic startup specializing in swarm AI drone technology.
In the realm of Advanced Air Mobility (AAM), Korean Air is laying the groundwork for commercial air taxis. The company has partnered with Skyports for vertiport development and holds an exclusive arrangement to operate up to 100 “Midnight” eVTOL aircraft from Archer Aviation.
We view this 200 billion won investment as a critical physical manifestation of Korean Air’s strategy to diversify its revenue streams. By building a robust defense and technology portfolio, the airline is actively insulating itself from the traditional volatilities of the passenger travel market, such as fluctuating oil prices and exchange rates.
Furthermore, the timing of this MOU coincides with strong governmental backing for the sector. In March 2026, the Korea Aerospace Administration (KAA) announced a 200 billion won “New Space Fund” to support domestic aerospace companies. Korean Air’s expansion in Busan perfectly positions the company to capitalize on both regional infrastructure developments, like the Gadeokdo New Airport, and national strategic funding initiatives.
Korean Air is investing 200 billion won (approximately $150 million USD) in the new facility, marking the largest aerospace investment in Busan’s history.
The plant will be built on an idle 36,363-square-meter site within Korean Air’s existing Busan Tech Center in the Gangseo District. The plant will serve as a multipurpose hub to manufacture next-generation commercial aircraft parts, upgrade military aircraft, and produce future AI-powered unmanned aerial vehicles (UAVs).
Facility Specifications and Strategic Objectives
Expanding the Busan Tech Center
Leadership Perspectives
Korean Air’s Broader Aerospace Ambitions
Beyond Passenger Aviation
The Push into AI and Advanced Air Mobility
Market Context and Outlook
AirPro News analysis
Frequently Asked Questions
How much is Korean Air investing in the new Busan plant?
Where will the new aerospace plant be located?
What will the new facility produce?
Sources
Photo Credit: News1
MRO & Manufacturing
Helicopter Services Secures Three Airbus H125s for 2026 Delivery
Helicopter Services, Inc. pre-purchases three Airbus H125 helicopters for 2026 to offer turn-key solutions amid supply delays, following a custom delivery to GCI Communications in Alaska.
This article is based on an official press release from Helicopter Services, Inc.
In a strategic move to bypass ongoing aerospace supply chain delays, Texas-based Helicopter Services, Inc. (HSI) has announced the acquisition of three Airbus H125 helicopters scheduled for delivery in 2026. According to the company’s March 16, 2026, press release, these aircraft are being procured in advance to offer operators turn-key, mission-ready solutions without the standard manufacturer wait times.
The announcement follows closely on the heels of a major milestone for the maintenance, repair, and overhaul (MRO) provider: the mid-2025 delivery of a highly customized Airbus H125 to GCI Communications, Alaska’s largest telecommunications provider. That delivery underscored HSI’s growing footprint in specialized utility completions, outfitting aircraft for some of the most extreme environmental conditions in North America.
By securing these 2026 delivery positions, HSI aims to target operators across diverse sectors, including public safety, mosquito abatement, utility operations, aerial firefighting, and VIP transport. We are seeing a distinct trend where completion centers are taking on procurement risks to guarantee availability for their end-users.
According to the official announcement, HSI’s purchase of the three Airbus H125s is designed to streamline the acquisition process for its clients. Rather than an operator ordering a green aircraft from Airbus and waiting for production and subsequent outfitting, HSI will receive the aircraft directly and perform custom completions in-house.
Company leadership emphasized that this approach directly addresses the needs of operators who require immediate operational readiness.
“Securing these delivery positions allows HSI to better support operators seeking the proven performance and versatility of the Airbus H125. HSI is pleased to continue strengthening our relationship with Airbus Helicopters.”
Mike Crossland, General Manager, HSI
We view HSI’s decision to pre-purchase inventory as a notable strategic shift within the helicopter completion and MRO industry. Historically, completion centers waited for clients to procure their own aircraft before beginning customization work. By securing these three H125s, HSI is effectively acting as a specialized dealer. In a market where supply chain bottlenecks continue to hinder critical public safety and utility operations, offering a ready-to-fly, customized helicopter is a significant competitive advantage. This model is highly lucrative when applied to niche markets like aerial spraying or heavy-lift utility, where mission-specific outfitting is mandatory. The 2026 acquisition strategy is built upon HSI’s recent successes in complex utility completions. In mid-2025, the company delivered a custom-completed H125 to GCI Communications. According to project details released by HSI, the aircraft was specifically tailored to support GCI’s TERRA network.
Data provided in the company’s release notes that the TERRA network delivers internet and cellular service to 84 rural communities across Alaska. The infrastructure relies on 22 remote, self-sufficient towers. Because these sites are inaccessible by road, they require annual refueling via helicopter. HSI reports that the operation involves transporting over 110,000 gallons of diesel fuel annually to keep the network online.
To meet the rigorous demands of heavy utility work in freezing, remote terrain, HSI outfitted the GCI helicopter with several specialized components. According to the release, modifications included an advanced autopilot system, an Onboard Systems cargo hook designed for heavy external loads, and a DART Vertical Reference Floor Window, which provides pilots with enhanced downward visibility during precision long-line flying.
“GCI is a new client for Helicopter Services, Inc. They are the largest communications provider in Alaska and we outfitted their new H125 to meet operational demands and environmental conditions in which it will be flying.”
Ali Durham, Project Manager, HSI
The choice of the Airbus H125 for both the GCI delivery and the 2026 bulk order is rooted in the aircraft’s industry standing.
Formerly known as the AS350 B3e, the Airbus H125 is widely recognized as the leader in the single-engine helicopter market. Industry specifications highlight that it accounts for over 75% of all single-engine law enforcement deliveries in North America. Powered by a Safran Arriel 2D engine, the H125 boasts a maximum cruise speed of 137 to 140 knots and a range of approximately 340 nautical miles. Its utility capabilities are anchored by a sling capacity of 1,400 kg (3,086 lbs), making it highly effective for the external load lifting required by clients like GCI.
Founded in 1980 and based at the David Wayne Hooks Memorial Airport in Spring, Texas, HSI has steadily expanded its capabilities. According to company background data, HSI is an FAA Part 145 Certified Repair Station and holds the unique distinction of being the only company on the U.S. General Services Administration (GSA) marketplace focused solely on the helicopter industry.
To support its growing roster of clients, which includes the Houston Police Department and various municipal mosquito control districts, HSI expanded its facility in May 2025. The expansion increased their footprint to over 25,000 square feet, adding dedicated shop areas for sheet metal, composites, and avionics to handle the increased demand for MRO and air medical completions. Why is Helicopter Services, Inc. buying helicopters in advance? What is the Airbus H125 used for? What customizations were made for the GCI Communications helicopter?
Helicopter Services, Inc. Secures Three Airbus H125s for 2026, Following Major Telecom Delivery
Proactive Procurement for 2026 Deliveries
AirPro News analysis
Conquering Alaskan Extremes with GCI Communications
The TERRA Network Mission
Customizing for the Cold
The Airbus H125 and HSI’s Growing Footprint
The H125 Workhorse
HSI Facility Expansion
Frequently Asked Questions
According to HSI, pre-purchasing aircraft allows the company to bypass standard manufacturer wait times. This enables them to offer clients fully customized, turn-key helicopters much faster than traditional procurement methods.
The Airbus H125 is a versatile single-engine helicopter used heavily in public safety, utility operations, aerial firefighting, and VIP transport. It is particularly noted for its high-altitude performance and heavy external sling capacity (up to 3,086 lbs).
To support remote telecom tower refueling in Alaska, HSI equipped the GCI helicopter with an autopilot system, a DART Vertical Reference Floor Window for precision flying, and an Onboard Systems cargo hook for heavy utility lifting.
Sources:
Photo Credit: Helicopter Services, Inc.
MRO & Manufacturing
EU and India Sign Aviation Production Working Arrangement in 2026
The EU and India agreed to align aerospace manufacturing standards, enabling Airbus H125 helicopter assembly in Karnataka by 2026.
On March 23, 2026, the European Union and India signed a landmark Working Arrangement to deepen cooperation in industrial aviation production. Officially announced on March 27, the agreement between the European Union Aviation Safety Agency (EASA) and India’s Directorate General of Civil Aviation (DGCA) aims to align Indian aerospace manufacturing with global safety standards.
According to the official press release and accompanying research, a central pillar of this pact is the support for India’s “Make in India” initiative. Specifically, the arrangement facilitates the assembly of Airbus H125 helicopters in Karnataka under stringent EU standards, marking a significant step in localizing aviation production and strengthening strategic aerospace ties between the two regions.
We at AirPro News view this development as a critical milestone in the long-standing strategic partnership between the EU and India, directly building upon commitments made during the EU-India Summit in January 2026, where civil aviation safety was identified as a high-priority focus area.
The core objective of the newly signed agreement is to support industrial cooperation by ensuring domestic manufacturing practices in India align with European norms. The EEAS press release highlights that this regulatory harmonization will make global market access easier for Indian aerospace products, ensuring that safety and sustainability remain central to the rapid growth of the aviation sector.
The most prominent project enabled by this working arrangement is the final assembly of Airbus H125 helicopters. According to industry research, India’s first private-sector helicopter Final Assembly Line (FAL) has been established by Tata Advanced Systems Limited (TASL) in partnership with Airbus at the Vemagal Industrial Area in Karnataka’s Kolar district.
The facility, which was virtually inaugurated in February 2026 by Indian Prime Minister Narendra Modi and French President Emmanuel Macron, is expected to become operational in April 2026. Production timelines indicate that the first “Made in India” H125 helicopter is projected for delivery in early 2027. The H125 is recognized as the world’s best-selling single-engine helicopter, known for its ability to operate in extreme, high-altitude environments.
The signing of the working arrangement preceded the EU-South Asia Aviation Partnership Project Workshop, held in New Delhi from March 24 to 26, 2026. Organized by EASA in close cooperation with the DGCA and supported by European turboprop manufacturer ATR, the workshop focused on strengthening practical collaboration and addressing day-to-day flight operations across the South Asian region. By aligning with the 27-member bloc’s safety standards, India is positioning itself as a key exporter in the aerospace sector. The Karnataka facility is expected to serve not only the domestic market but also export to the broader South Asian region.
“Aligning Indian production with the 27-member bloc’s safety standards and export certificates will help deliver aircraft products manufactured in India to the global market,” noted EU Ambassador Hervé Delphin, according to the provided research report.
We assess that this working arrangement represents a landmark step toward self-reliance in aerospace and defense for India. By localizing the assembly of critical aerospace assets, India is significantly expanding its manufacturing ecosystem, following the previous Tata-Airbus joint venture for the C-295 military transport aircraft in Gujarat.
Furthermore, the mutual commitment to safe, resilient, and sustainable air transport underscores the increasing operational and environmental challenges facing the global aviation industry. The integration of EU safety standards will likely bolster supply chain resilience for both regions while opening new avenues for military and civil aviation logistics.
It is an agreement signed on March 23, 2026, between the European Union Aviation Safety Agency (EASA) and India’s Directorate General of Civil Aviation (DGCA) to align Indian aerospace manufacturing with European safety standards.
According to industry timelines, the Tata-Airbus facility is expected to become operational in April 2026, with the first helicopter delivery anticipated in early 2027.
Harmonizing Regulatory Frameworks
The Airbus H125 Project in Karnataka
Regional Collaboration and Export Potential
Expanding Global Reach
AirPro News analysis
Frequently Asked Questions
What is the EU-India Working Arrangement on Industrial Aviation Production?
When will the Airbus H125 facility in Karnataka become operational?
Sources
Photo Credit: The CSR Journal
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