Widebody Aircraft Supply Tight as Boeing and Airbus Face Production Challenges

The Squeeze on the Skies: Why Widebody Aircraft are in Short Supply

The global aviation industry is currently navigating a period of significant turbulence, not from weather, but from a severe bottleneck in the supply of widebody Commercial-Aircraft. These larger jets, the workhorses of long-haul international travel, are facing what Aengus Kelly, CEO of the world’s largest aircraft leasing company, AerCap, has described as an “extraordinarily acute” supply situation. This scarcity is not a simple matter of production lines running a little behind schedule; it’s a complex issue stemming from a confluence of persistent supply chain disruptions, skilled labor shortages, and a surprisingly robust resurgence in post-pandemic demand for international travel. The result is a significant imbalance where Airlines are eager to expand their fleets, but the two main Manufacturers, Boeing and Airbus, are struggling to keep pace.

This production crunch has far-reaching implications for the entire aviation ecosystem. Airlines are forced to delay expansion plans, rely more heavily on older, less fuel-efficient aircraft, and compete for the limited number of available new jets. This, in turn, affects ticket prices, route availability, and the overall passenger experience. The situation is so pronounced that Kelly has stated he does not expect the manufacturers to surpass their previous production peak of 2016 within this decade. This long-term forecast signals a prolonged period of adjustment for the industry as it grapples with these fundamental constraints on growth.

Understanding the root causes of this widebody deficit requires a closer look at the challenges plaguing the manufacturing giants and the broader economic forces at play. From specific program delays at both Boeing and Airbus to the ripple effects of global supply chain fragility, the factors are interconnected and complex. As the demand for long-haul and premium travel continues to climb, the pressure on the supply side intensifies, creating a dynamic and challenging environment for airlines, lessors, and manufacturers alike.

Production Headwinds at the Manufacturing Giants

The two titans of aircraft manufacturing, Boeing and Airbus, are both facing significant hurdles in their efforts to ramp up production of their flagship widebody models. These are not isolated incidents but rather a series of interconnected challenges that have created a systemic slowdown across their production lines. The issues range from specific program delays and quality control problems to the broader, more pervasive issue of a strained global Supply-Chain.

Boeing’s Bottlenecks

The American manufacturer, Boeing, has a long-term forecast that anticipates a need for nearly 8,065 new widebody airplanes through 2043. However, its current production capacity is being hampered by several key factors. The 787 Dreamliner program, for instance, has been subject to ongoing quality control issues that have previously led to significant delivery delays. While the company delivered 24 of the jets in the third quarter of 2025, the pace is still below what is needed to meet the surging demand.

Adding to the pressure is the much-anticipated 777X program, which has been beset by significant delays. The certification of this new flagship widebody has been pushed back, with initial deliveries now not expected until late 2026 or possibly even 2027. This delay has a cascading effect, forcing airlines that had planned on integrating the new, more efficient aircraft into their fleets to seek alternatives or extend the life of their existing planes. Furthermore, labor issues, including strikes in 2024, are expected to have a continuing impact on production throughout 2025.

The combination of these factors creates a challenging picture for Boeing’s widebody output. While the company is making progress in clearing its inventory of stored 787 jets, the fundamental constraints on new production remain a significant obstacle. The strong demand for its widebody models is a positive sign, but the inability to meet that demand in a timely manner is a source of frustration for both the manufacturer and its airline customers.

The open-order backlog for commercial aircraft would take an estimated 13 years to clear at 2023 delivery rates.

Airbus’s European Challenges

Across the Atlantic, Airbus is facing a similar set of challenges. The European manufacturer is aiming to increase production of its popular A350 to eight aircraft per month in 2025 and ten per month in 2026. However, these ambitious targets are being threatened by “many complications” with key supplier Spirit AeroSystems, which could delay the planned ramp-up. The production of the A330 family has stabilized at a more modest rate of approximately four units per month.

Further complicating the situation is the delay in the debut of the new A350 freighter variant, which has been pushed back to the second half of 2027. This is a setback for cargo operators who were counting on the new aircraft to modernize their fleets. Like Boeing, Airbus is also grappling with the broader effects of a fragile supply chain, which is impacting the availability of everything from engines to raw materials. These disruptions are a major impediment to meeting the travel demand and have a ripple effect across the entire industry.

While Airbus has a strong order book, with a projected demand for 8,200 widebody deliveries by 2044, the immediate challenge is one of execution. The company’s ability to navigate the current supply chain environment and resolve its production issues will be critical to its success in the coming years. The demand is clearly there, but the ability to supply is the question that looms large over the manufacturer’s future.

Demand Soars While Supply Stumbles

The production challenges at Boeing and Airbus are being exacerbated by a powerful surge in demand for air travel, particularly in the long-haul and premium segments. The post-pandemic recovery has been stronger than many anticipated, with passengers showing a renewed appetite for international travel. This has put immense pressure on airlines to expand their capacity, leading to a scramble for available aircraft, both new and used.

The Post-Pandemic Travel Boom

The rebound in air travel has been a welcome development for the industry, but it has also exposed the vulnerabilities in the aircraft supply chain. Airlines are responding to the surge in demand by increasing their premium seat offerings on widebody aircraft. United Airlines, for example, now has the highest percentage of premium seats among major U.S. carriers. This trend is a clear indicator of where the market is heading, with a greater emphasis on comfort and service on long-haul routes.

This focus on the premium market is driving a wave of new Orders for widebody jets. Recent notable deals include Qatar Airways’ order for 160 Boeing widebodies and Indian carrier IndiGo’s commitment for up to 60 Airbus A350s. These large orders underscore the confidence that airlines have in the long-term prospects of international travel, but they also add to the already lengthy backlog of aircraft waiting to be built and delivered.

The intense demand for new aircraft has also created a very strong market for used planes. Airlines are turning to the second-hand market to fill capacity gaps while they wait for their new jets to be delivered. This has driven up the value of existing aircraft, a trend highlighted by AerCap’s recent decision to raise its full-year earnings guidance, citing record gains from the sale of aircraft.

Concluding Section

The current state of the widebody aircraft market is a classic case of demand outstripping supply. The “extraordinarily acute” shortage described by AerCap’s CEO is the result of a perfect storm of factors: a surprisingly strong post-pandemic travel boom, persistent and widespread supply chain disruptions, and specific production challenges at both Boeing and Airbus. This imbalance is not a short-term issue; the consensus among industry experts is that these constraints will likely persist for the remainder of the decade. This will have a lasting impact on the aviation industry, shaping the fleet strategies of airlines, the business models of leasing companies, and the production priorities of manufacturers.

Looking ahead, the industry will need to find innovative solutions to navigate this challenging environment. This could include a greater focus on supply chain resilience, increased investment in new production technologies, and a more strategic approach to fleet management. The high demand for both new and used aircraft is a testament to the underlying strength of the aviation market, but the ability to meet that demand will be the defining challenge of the coming years. The squeeze on the skies is real, and how the industry responds will determine its trajectory for the foreseeable future.

FAQ

Question: Why is there a shortage of widebody aircraft?
Answer: The shortage is due to a combination of factors, including a strong post-pandemic rebound in demand for long-haul travel, persistent supply chain disruptions, and production challenges at both Boeing and Airbus.

Question: How long is the widebody aircraft shortage expected to last?
Answer: According to Aengus Kelly, CEO of AerCap, the world’s largest aircraft leasing company, the supply issues are expected to persist for the rest of the decade.

Question: What are the main production issues at Boeing and Airbus?
Answer: Boeing is facing delays with its 777X program and has had quality control issues with the 787 Dreamliner. Airbus is dealing with supplier complications for its A350 and has also faced delays with its A350 freighter variant.

Sources: Reuters