What’s going on here? Airbus lowered its profit outlook for this year by 20%, as the European aircraft manufacturer ran out of engine power – literally. What does this mean? Airbus’s woes have nothing to do with folk switching to helicopters or making peace with Boeing. The outlook downgrade was due to supply chain kinks, which have lingered since the pandemic. Engine manufacturers Pratt & Whitney and CFM International are stuttering and sputtering when it comes to production. So much so that Airbus, like any unhappy customer, is considering asking for compensation. Now, Airbus expects to deliver 770 aircraft this year. And although that’s only down from 800 – a drop of 4% – the knock-on effect on profit is going to be a lot bigger. Investors aren’t waiting around to find out: the company’s share price fell by 9% on Tuesday. Why should I care? Zooming in: Double trouble. Together, Airbus and Boeing have total control of the world's airplane production. That said, Boeing’s run of mid-air mishaps has forced it to slow down the giant conveyor belts. So now that even frequent flyers are hoping their plane tickets don’t read “737”, Airbus is in prime position to bump up its market share. Problem is, Airbus can’t even fulfill its own order book this year, let alone pick up Boeing’s slack. So without an industry titan to rely on, airlines are simply making do by refurbishing their existing planes, which is only making new parts even more scarce. The bigger picture: Slowly, slowly. Supply chains are crucial for companies, and the more spread out they are, the more that can go wrong between factory and delivery. That’s why many firms have been bringing production sites closer to home, in a process called “onshoring”. And to its credit, Airbus is trying to iron out its situation by buying one of its suppliers, which should lead to a smoother ride. | 