Name: Airbus shares drop on reports of A320 quality issues
Uploaded: 2025-12-01T17:00:29.005Z
Duration: 2 min 59 s
Description: CNBC’s Phil LeBeau joins ‘Squawk on the Street’ to report on Airbus after the European aerospace giant’s stock fell following reports of a new quality issue affecting dozens of A320 aircraft.

CNBC’s Phil LeBeau joins ‘Squawk on the Street’ to report on Airbus after the European aerospace giant’s stock fell following reports of a new quality issue affecting dozens of A320 aircraft.

Leiden

Airbus shares dropped after the company announced its broadest emergency recall, prompted by both a recent software issue and newly reported manufacturing quality concerns affecting A320 fuselage panels currently in production. The company stated that only a portion of affected aircraft are expected to require further action, and there is no indication that delivered planes are impacted.

Despite these issues, Airbus has not changed its full-year delivery guidance of approximately 820 planes, with 695 delivered as of October. Most airlines affected by the software directive, including American, Delta, and United, have already completed required updates, resulting in limited operational impact. However, the incidents have raised new quality concerns for Airbus, though they are considered less severe than Boeing's past 737 MAX problems.

Airbus shares drop on reports of A320 quality issues

Airbus shares in the red after the airplane maker issued its broadest emergency recall in company history. Let's get to Phil LeBeau with the latest as we got some market cap definitely destroyed today, Phil. Absolutely, Carl, and there's two issues here for Airbus. First of all, there was the software fix that was initiated from an airworthiness directive out of Europe on Friday. We'll talk about that in a little bit. But the news this morning, some people might be waking up and saying, wait a second, there's another issue with the A320. Yes, this was first reported by Reuters early this morning out of Europe, and it has to do with the manufacturing quality of some of the fuselage panels for A320s that are in production. In production is key here because there's no indication that this has impacted any A320s that have already been delivered. Airbus issuing a statement to us within the last hour saying Airbus is taking a conservative approach and is inspecting all aircraft potentially impacted, knowing that only a portion of them will need further action to be taken. If you take a look at shares of Airbus, remember what really drives shares, not just for Airbus, but for Boeing, really for any of the companies when you're looking at the aviation manufacturing space, its deliveries. The guidance for this year, approximately 820 planes, they have not changed their guidance. Through October, Airbus has delivered 695 planes. The concern is that they're going to come down from 820, and that's why you see shares of Airbus under some pressure here. Also, take a look at American, Delta, United. The reason we're showing you these guys is that on Friday, they were impacted by the airworthiness directive that said, look, there's an issue with the software for A320s that must be immediately updated before these aircraft can go back in the air. There was concern on Friday that you might see widespread cancellation of flights because of aircraft that were having the software updated. But guys, most of the aircraft, 6,000 worldwide, most of them have had that software update completed, including American, Delta, United here in the United States. So a limited, very limited impact for those airlines. But nonetheless, all of this raises quality concern questions when it comes to Airbus. And we're more used to quality concerns questions in recent years related to Boeing. Phil, obviously, a completely different story. But I just wonder if you could put in perspective how big of a deal that these issues are relative to some we've seen in recent years. These are not as big as the Boeing issues a few years ago, because, first of all, Boeing at one point had stopped production, had dramatic to dramatically draw down its production of the 737 MAX. So those are those were far more serious in terms of the impact on the bottom line than what we're noticing here with Airbus. But make no mistake, if they have to draw down their guidance in terms of full year deliveries, that's where the pressure will come from.

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