Airbus CEO warns geopolitical risks threaten future aircraft development.

The head of Airbus has issued a strong warning to employees. CEO Airbus CEO Guillaume Faury cautioned that the plane maker must adapt quickly. The company faces unsettling new geopolitical risks trade tensions after recent disruptions. Faury noted "significant" logistical and financial damage from trade pressures last year.

In an internal letter seen by Reuters, Faury described the start of 2026. He said it is marked by an "unprecedented number of crises" and "unsettling geopolitical developments." He urged a spirit of "solidarity and self-reliance" within the company. The industrial landscape is now "sown with difficulties," he stated. This is notably "exacerbated by the confrontation between the U.S. and China."

Geopolitical and Trade Pressures

The US-China trade confrontation has directly impacted the aerospace sector. Faury noted that multiple trade pressures caused aerospace industry logistical damage. This damage was both logistical and financial for Airbus.

Last April, U.S. tariffs were announced, prompting Chinese restrictions. China then restricted exports of rare earth materials. Washington later temporarily froze exports of key components to China. These components include engines and other critical parts. This freeze affects China’s C919 jet program. It also impacts Airbus jets assembled in China, which require U.S. parts.

While the aerospace sector won a partial reprieve from some U.S. tariffs, the uncertainty remains. Faury's memo circulated amid broader disunity among Washington and its allies. This highlights the complex political backdrop for the major European defense supplier.

Collateral Damage to the Commercial Aviation Supply Chain

Despite improvements since the COVID-19 pandemic, supply chains remain a disruption source. The most severe issues for Airbus have been with engine deliveries. Faury specifically named Pratt & Whitney CFM engines as the source of the most serious difficulties.

Recently retired commercial CEO Christian Scherer also singled out Pratt & Whitney. He noted that A320-family engines continue to arrive late. This ongoing engine delay directly slows down jet deliveries to airlines globally. The issues with Pratt & Whitney CFM engines are a major constraint on production ramp-up.

Operational Challenges and Future Focus

Faury also stressed the need for greater rigor in product management. This follows a major software-related recall in November. Days later, Airbus was forced to issue an Airbus delivery goals cut. This was due to the discovery of flawed fuselage panels. However, the company maintained its overall financial goals. This resilience was partly due to progress on a commercial cost-cutting plan.

Faury congratulated the group’s 160,000 staff for "good results" overall in 2025. The company will publish its full results on February 19. He also noted that Airbus Defense and Space is on a much stronger footing. Airbus Helicopters also showed "remarkably consistent" performance strength.

Looking ahead, the CEO signaled a focus on the bottom line. Achieving profitable growth in the second half of the 2020s is essential. This is necessary to build a financial "warchest." This warchest will fund the future aircraft development battle with Boeing.

Preparing for the Next Generation

The 2030s will be dominated by the development of an Airbus A320 successor development. This new single-aisle aircraft is expected to enter service late in the decade. Boeing is expected to follow a similar timeline. The American manufacturer is prioritizing debt reduction in the near term.

Faury told employees that Airbus must be in "Olympic' shape" for this crucial period. The company's future depends on its ability to execute this strategy. The current geopolitical risks trade tensions make this preparation even more critical.

• Trade Tensions: US-China trade disputes caused "significant collateral damage" in 2025.
• Supply Chain Risk: Engine delays from Pratt & Whitney and CFM International remain the most serious commercial aviation supply chain difficulty.
• Future Strategy: The primary goal is profitable growth through the late 2020s to fund the Airbus A320 successor development in the 2030s.

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