PARIS (Reuters) -Global aerospace supply chains will remain under pressure throughout 2024, Safran (EPA:SAF) CEO Olivier Andries said on Friday.
"We remain in a difficult situation with the supply chain. (The) problems are not solved and will broadly last throughout 2024," he told the AJPAE French aerospace media association.
Safran co-produces with General Electric (NYSE:GE) the widely used LEAP engine for medium-haul jetliners and is also one of the world's largest suppliers of other aeronautical equipment.
Pressure is particularly severe on titanium and steel supplies, contributing to inflation in the sector, Andries added.
He also singled out castings and forgings but said a recent worldwide shortage of computer chips had eased considerably. He also noted difficulties in recruitment following a wave of early retirements during the pandemic.
Andries said supply chain shortages had complicated efforts to increase airliner production.
He told reporters CFM was "fully aligned" with manufacturers on production planes through the end of 2024 but was still discussing quantities of engine supplies for 2025.
CFM is the sole engine supplier for the Boeing (NYSE:BA) 737 and has a 60% share of the backlog for the Airbus A320, for which airlines can choose between engines from CFM or Pratt & Whitney.