Both duopoly members are having difficulties raising production rates and meeting production targets. This is particularly true for the high volume narrow-body aircraft that comprise the bulk of their backlog, the A320neo family and the 737 MAX.  As we enter the second quarter of 2025, issues have emerged for both companies.
Supply Chain Constraints Continue in Key Segments
The supply chain continues to be problematic. The SPS Technologies fastener plant near Philadelphia that burned down won’t be restored quickly, and it supplies a substantial portion of the industry’s fasteners. While this will be manageable at today’s production levels, there isn’t much room for growth until the facility can be restored.Â
