Strikes on Gulf aluminium facilities disrupt supply chains, lowering Airbus’ price target

Bank of America lowered its price target for Airbus from EUR 259 (USD 300.62) to EUR 255 (USD 295.98), while maintaining a ‘Buy’ rating, citing rising aluminium supply costs.

The price revision follows supply disruptions linked to strikes by Iran, which damaged aluminium plants in the United Arab Emirates and Bahrain. The Emirates Global Aluminium plant in Al Taweelah, Abu Dhabi, and the Aluminium Bahrain facility were affected, with Alba stopping some deliveries after the attack.

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These two plants produced about 1.6 million tonnes each in 2025. Together, they account for about 4 per cent of global aluminium supply. Aluminium prices rose after the disruption. Prices increased by about 6 per cent after the strikes and are about 15 per cent higher than before the conflict.

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Bank of America expects Airbus to face higher costs in the coming years. It estimates extra costs of about EUR 100 million (USD 116 million) in 2026 and EUR 200 million (USD 232 million) in 2027.

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The bank also reduced aircraft delivery estimates. Airbus is expected to deliver about 860 aircraft in 2026 and 960 in 2027. The improvement in margins for the A350 programme may be delayed by one to two years. 

As a result, earnings estimates for 2026 and 2027 were reduced by 5 per cent to 8 per cent. Airbus shares were trading at EUR 159.18 (USD 184.80).