Airbus Projects Dip in Titanium Demand for 2025, Recovery in 2026

Forecasting Fluctuations in Titanium Demand
Airbus, the European aerospace leader, anticipates a temporary decline in titanium demand for 2025. This forecast follows an unexpected surge in demand during 2024, driven primarily by buffer stock accumulation. Olivier Maillard, Airbus’ vice president of metallic material procurement, shared these insights at the recent International Titanium Association conference in Austin, urging suppliers to prepare for a rebound in 2026.

2024 Buildup and 2025 Adjustment
As Airbus ramped up production in 2024, it engaged in significant buffer stock accumulation, leading to titanium offtake that outpaced actual production needs. Maillard explained that this buildup is a response to the steep ramp trajectories across all programs, which will necessitate a temporary adjustment in 2025. Despite a slight increase in titanium demand compared to pre-pandemic levels, Airbus has tempered growth expectations for 2026, projecting consumption to remain below the peak levels witnessed in 2017-2018.

Production Plans Amid Supply Chain Challenges
While specific figures for 2026 titanium volumes remain undisclosed, Maillard expressed cautious optimism for a recovery following the anticipated adjustment in 2025. Airbus aims for a production rate of 75 A320s per month by 2027, a year later than initially planned due to ongoing supply chain constraints. The widebody aircraft, particularly the A350, continue to drive titanium demand, with a titanium content of approximately 14-15% by weight compared to around 10% for the A320neo.

Strategic Sourcing Amid Geopolitical Concerns
Airbus maintains a strategic sourcing relationship with Russian supplier VSMPO-Avisma for titanium, emphasizing compliance with current sanctions. Maillard stated, “There are no sanctions on VSMPO titanium today, so yes, we continue to source VSMPO titanium.” However, he assured that Airbus is prepared to seek alternatives should the geopolitical landscape change and new sanctions arise, highlighting the importance of diversifying procurement strategies to mitigate risks.