Airbus expects global aircraft demand to remain strong despite geopolitical tensions in the Middle East, as airlines continue placing orders and expanding their fleets. The European aircraft manufacturer has secured more than 800 aircraft orders so far in 2026 and continues targeting 870 deliveries this year, even as supply chain disruptions remain a constraint on production.
Arturo Barreira, President, Airbus Latin America and the Caribbean, said the conflict in the Middle East has increased fuel prices but has not weakened airline demand for new aircraft.
“Yes, the conflict in the Middle East has caused oil prices, the main input cost for airlines, to increase. Even so, demand remains strong across many market segments. We continue to see airlines wanting to acquire and order more aircraft. We have not seen a global slowdown,” Barreira said in an interview with A21.
The comments come as the aerospace industry continues to manage production bottlenecks while facing sustained long-term growth in passenger traffic. According to the International Air Transport Association (IATA), global passenger traffic is expected to grow at an average annual rate of 3.6% over the next 20 years, requiring 43,420 new passenger and freighter aircraft by 2044.
IATA estimates that 34,250 of those aircraft will be single-aisle models and 9,170 will be widebody aircraft. The global fleet is projected to expand from 24,730 aircraft at the end of 2024 to 49,210 by 2044, while approximately 18,930 older aircraft are expected to be retired.
Barreira said Latin America has not experienced operational impacts related to the Middle East conflict and noted that oil prices have already begun to ease following the announcement of a provisional ceasefire.
Regarding deliveries, Airbus remains committed to its goal of delivering 870 commercial aircraft in 2026. Through May, the manufacturer had delivered 262 aircraft, representing 30.1% of its annual target. To reach its objective, Airbus must deliver the remaining 608 aircraft, or an average of approximately 87 aircraft per month for the rest of the year.
“As we expected at the beginning of the year, the second half will carry a heavier workload. We had a very good May with 81 aircraft delivered, and if we want to reach 870 deliveries, we will need to maintain that pace,” Barreira said.
Achieving that target would allow Airbus to surpass its pre-pandemic record of 863 aircraft delivered in 2019. Deliveries fell to 566 aircraft in 2020 before recovering to 793 aircraft last year. Airbus had originally planned to deliver 820 aircraft in 2025 but reduced the target due to supply chain constraints affecting the A320 program.
Supply chain disruptions continue to limit production across the aerospace industry. Earlier this year, Airbus CEO Guillaume Faury acknowledged that the company had reduced production plans and moderated financial expectations after Pratt & Whitney lowered previously committed engine delivery volumes.
To reduce delays, Airbus has expanded direct support for suppliers through financial assistance, engineering resources, and operational oversight.
“We have more Airbus personnel working at supplier facilities than ever before. We use watchtowers to identify supplier issues before they occur so we can activate measures that minimize or offset those problems,” Barreira said.
“We have even supported suppliers financially. We have provided engineering assistance and other resources. The level of involvement we have maintained over the past few years to minimize disruptions has never existed before.”
The company’s approach aligns with broader industry concerns. IATA recently estimated that aerospace supply chain failures cost airlines at least US$11 billion in 2025, driven by delayed aircraft deliveries, engine durability issues, shortages of materials and spare parts, and limited maintenance capacity.
“Along with aircraft delivery delays, engine durability problems, shortages of materials and spare parts, and limited maintenance capacity are affecting airline operations. Addressing these challenges will require practical actions and cooperation across the aviation value chain,” said Stuart Fox, IATA Director of Flight Operations and Technical.
To improve supply chain resilience, IATA identified four priorities: increasing supply chain visibility, expanding competition in the aftermarket, accelerating digitalization and artificial intelligence adoption, and strengthening the industry’s technical workforce.
Airbus continues investing in production support while preparing for sustained fleet renewal. According to IATA, replacing older aircraft with new-generation models remains one of the fastest ways for airlines to reduce fuel consumption and emissions. Airbus also reported that all currently produced commercial aircraft are capable of operating with up to 50% sustainable aviation fuel, with plans to reach 100% SAF capability by 2030.