Airbus Recalls 6,000 A320 Jets, Disrupting Asia-Pacific Airlines
Written by Emily J. Thompson, Senior Investment Analyst
Source: Newsfilter
Updated: 6 day ago0mins
- Massive Recall: Airbus's recall of 6,000 A320 jets marks one of the largest in its 55-year history, affecting over 350 operators globally, particularly in rapidly growing markets like China and India, which may lead to operational challenges for airlines.
- Software Issue Impact: The recall was triggered by an incident in October involving a JetBlue flight that experienced a significant loss of altitude, prompting global regulators to require airlines to address the software issue before resuming flights, potentially affecting confidence in aviation safety.
- Flight Cancellations and Delays: ANA Holdings canceled 65 flights, while India's IndiGo and Air India completed software resets on 143 out of 200 and 42 out of 113 affected aircraft respectively, with Air India noting that overall schedule integrity remains intact but delays may still occur.
- Regional Impact Assessment: Taiwan and Macau's aviation authorities have also mandated inspections, with Taiwan estimating that around two-thirds of its 67 A320 and A321 aircraft are affected, highlighting the widespread impact of the recall on the Asia-Pacific aviation sector.
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Analyst Views on AIR
Wall Street analysts forecast AIR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AIR is 89.00 USD with a low forecast of 85.00 USD and a high forecast of 93.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 82.640
Low
85.00
Averages
89.00
High
93.00
Current: 82.640
Low
85.00
Averages
89.00
High
93.00
Jefferies
Chloe Lemarie
Buy
downgrade
2025-12-03
New
Reason
Jefferies
Chloe Lemarie
Price Target
2025-12-03
New
downgrade
Buy
Reason
Jefferies analyst Chloe Lemarie lowered the firm's price target on Airbus to EUR 230 from EUR 235 and keeps a Buy rating on the shares after Airbus lowered its 2025 delivery guidance following the discovery of a quality issue with one supplier providing external skin panels. Airbus trimming its guidance to 790 deliveries, but maintaining its adjusted EBIT guide of about EUR 7B and free cash flow guidance of about EUR 4.5B is positive on operating leverage, but leads the firm to trim its price target, the analyst noted.
RBC Capital
Outperform
maintain
$85 -> $90
2025-11-26
Reason
RBC Capital
Price Target
$85 -> $90
2025-11-26
maintain
Outperform
Reason
RBC Capital raised the firm's price target on AAR Corp. to $90 from $85 and keeps an Outperform rating on the shares. The firm is updating AAR Corp estimates to include the company's two recent acquisitions - ADI and HAECO - and its follow-on equity raise, the analyst tells investors in a research note. Although initially dilutive, the long-term opportunity to expand company margins remains intact as AAR delivers on adding scale and limiting its USM exposure, the firm added.
KeyBanc
NULL
to
Overweight
maintain
$86 -> $93
2025-09-29
Reason
KeyBanc
Price Target
$86 -> $93
2025-09-29
maintain
NULL
to
Overweight
Reason
KeyBanc raised the firm's price target on AAR Corp.to $93 from $86 and keeps an Overweight rating on the shares. Post the firm's proprietary Q3 Plane Chain survey of aerospace suppliers, KeyBanc sees a meaningful step-up in A&D OEM order activity post a period of destocking and subdued OEM build rates. The firm remains confident on enduring tightness within the A&D aftermarket and strength within Space & Defense.
Truist
Michael Ciarmoli
maintain
$81 -> $90
2025-09-24
Reason
Truist
Michael Ciarmoli
Price Target
$81 -> $90
2025-09-24
maintain
Reason
Truist analyst Michael Ciarmoli raised the firm's price target on AAR Corp. to $90 from $81 and keeps a Buy rating on the shares after its Q1 earnings beat. The company's parts distribution business continues to pace the top line strength, benefiting from both government and commercial demand, while margins - though down sequentially on seasonality - increased from last year, the analyst tells investors in a research note. Commercial aftermarket demand for AAR also "remains healthy", the firm added.
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About AIR
AAR Corp. is a global aerospace and defense aftermarket solutions company with operations in over 20 countries. The Company’s Parts Supply segment consists of its sales of used serviceable engine and airframe parts and components and distribution of new parts. The Repair & Engineering segment consists of its maintenance, repair, and overhaul (MRO) services across airframes and components. The Integrated Solutions segment consists of its fleet management and operations of customer-owned aircraft, customized performance-based supply chain logistics programs in support of the United States (U.S.) Department of Defense, U.S. Department of State, and foreign governments, flight hour component inventory and repair programs for commercial airlines, and integrated software solutions, including Trax. The Expeditionary Services segment consists of products and services supporting the movement of equipment and personnel by the U.S. and foreign governments and non-governmental organizations.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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