Both planemakers are beginning early preparations for next-generation narrow-body aircraft that could eventually replace today’s best-selling models, the Boeing 737 Max and Airbus A320neo families. However, executives from both companies acknowledge that the industry’s current challenges — including production delays, supply-chain problems and certification hurdles — must be addressed before launching a major new aircraft program.
Boeing Chief Executive Officer Kelly Ortberg said the company remains interested in developing a future commercial aircraft but needs more time to strengthen its financial position before committing to such an expensive project.
Ortberg said Boeing must first ensure it is financially prepared, while also waiting for the right technology and market conditions.
“We think about three things that have to happen,” Ortberg told CNBC’s Phil LeBeau. “First of all, we have to be ready, and part of that is getting our financial house in order, and we’re working on that. It’s going to take a couple more years to get where we want to be.”
According to Ortberg, the timing of a new aircraft program will depend on more than Boeing’s internal readiness. The company also needs to see that technology has matured and that airline customers are prepared to transition beyond the current generation of aircraft.
“The market’s got to be ready. Right now, the customers are telling me, ‘focus on your existing product line, we really want to see better maturity of the existing product line before we move to a new airplane,’” he said.
Airbus Targets 2030 Launch for Next Single-Aisle Aircraft
While Boeing has not announced a specific launch date for a future narrow-body aircraft, Airbus has indicated a clearer timeline.
Airbus CEO Guillaume Faury said the European manufacturer is aiming to launch a next-generation single-aisle aircraft program around 2030, with the aircraft expected to enter service during the second half of the 2030s.
Faury said Airbus remains focused on preparing future technologies while continuing to increase production of its current aircraft lineup.
“We’re a long-term industry,” Faury said. “It takes time to prepare the technologies, to launch a program for the product, for the production system, [to] enter into service with the certification, do the ramp up.”
The Airbus chief executive said the company wants to maintain its strong position in the single-aisle market, where its A320 family competes directly with Boeing’s 737 Max series.
However, he stressed that current production demands remain the company’s main challenge.
Production Problems Take Priority Over Future Aircraft
The aviation industry is currently facing significant manufacturing constraints, making aircraft deliveries the key concern for airlines and investors.
Boeing is working to increase production of the 737 Max and 787 while continuing efforts to address quality and manufacturing problems that have affected its reputation. The company is still recovering from several production setbacks, including the January 2024 incident involving a fuselage door plug failure on a 737 Max 9 aircraft.
Airbus has also experienced supply challenges, particularly with engine availability from Pratt & Whitney, which forced adjustments to its production plans. Faury said the situation has improved but acknowledged that supply-chain stability remains important.
For airlines, the priority is clear: receiving aircraft already ordered to meet growing passenger demand.
RBC Capital Markets analysts said investors are mainly watching Boeing’s ability to increase 737 Max and 787 production, complete certification of the Max 7 and Max 10 variants, improve profitability and generate cash.
“The primary focus for investors will remain on the state of the supply chain and delivery schedules,” the analysts wrote in a note to clients.
Airbus Backlog Highlights Strong Demand
Airbus is also under pressure to convert its large order backlog into actual deliveries.
The company currently has a backlog of more than 9,000 aircraft, reflecting strong global demand for new airplanes. Airlines continue to seek additional capacity as passenger numbers recover and expand worldwide.
Jefferies analysts said Airbus’ delivery growth has been driven largely by the A320 family, with 190 aircraft delivered during the second quarter.
The analysts said the increase in A320-family deliveries is expected to support stronger earnings growth for Airbus. The company is scheduled to release its quarterly financial results next week.
Airbus also secured additional demand for its narrow-body aircraft, recording 51 A320neo orders in June, according to analysts.
Boeing Focuses on Completing 737 Max Certification
At Boeing, much of the attention remains on completing certification for the remaining members of the 737 Max family.
Jefferies analysts said certification work for the 737 Max 7 and Max 10 was nearing completion, with progress estimated at 95% and 98%, respectively.
The Max 10 is particularly important for Boeing because it has more than 1,500 aircraft on order, representing about one-third of the company’s 737 backlog.
Ortberg said Boeing expects FAA certification for the 737 Max 7 “very shortly,” describing the milestone as significant because it would represent the first new aircraft certification by the regulator in many years.
Boeing is also investing heavily in production capacity. The company has committed about $1 billion to build a fourth 737 Max production line in Everett, Washington, which could eventually allow output beyond the capacity of its existing facilities in Renton.
Airlines Continue Expanding With Current Aircraft
While Boeing and Airbus consider the future of aviation, airlines are continuing to expand using existing aircraft models.
Ryanair, one of Boeing’s largest customers outside the United States, recently completed delivery of its current order of Boeing 737 Max 8-200 jets. The airline’s Chief Financial Officer Neil Sorahan said the expanded fleet helped the carrier reach nearly 650 aircraft and contributed to a 6% increase in first-quarter traffic.
Sorahan said Ryanair expects passenger numbers to rise by about 4% this year to 216 million.
The situation reflects a shared reality for aircraft manufacturers and airlines: future aircraft technology is important, but immediate operational needs come first.
The eventual successors to the Boeing 737 Max and Airbus A320neo families could redefine competition in the world’s largest commercial aircraft market for decades. But before that next battle begins, both manufacturers must prove they can deliver the airplanes customers have already been waiting for.