Engine delivery woes holding back annual targets, says Airbus

DUBAI – Airbus said the lack of reliable engine supplies for its A320 family of jets is holding back production and aircraft deliveries, extending the planemaker’s struggles to meet record demand for its best-selling model. 

The company said monthly production of A320 aircraft will reach 70 to 75 by the end of 2027, after previously aiming to achieve the higher end of that band by then. It said it plans to deliver around 870 jets to customers in 2026, compared with the 793 it handed over in 2025, according to a statement on Feb 19 announcing annual results. 

Airbus has suffered from what chief executive officer Guillaume Faury called a “significant” shortage of engines provided by Pratt & Whitney, forcing it into a furious dash to meet 2025’s delivery target – which it then lowered in the final weeks of the year. While the 2026 goal marks a record, Airbus has on several occasions been forced to revise the projection in past years. 

“Pratt & Whitney’s failure to commit to the number of engines ordered by Airbus is negatively impacting this year’s guidance and the ramp-up trajectory,” Airbus said in the statement. 

The European manufacturer also said production of the smaller A220 model would reach 13 a month in 2028, after saying in 2025 that it would achieve 12 units in 2026. Production of the A320 family will stabilise at 75 monthly units after 2027, Airbus said, while the company continues target rate five for the larger A330 in 2029 and rate 12 for the flagship A350 in 2028.

The company sees free cash flow before customer financing at around €4.5 billion (S$6.7 billion) in 2026, compared with €4.57 billion in 2025. Airbus expects adjusted earnings before interest and taxes of about €7.5 billion in 2026. 

Engine shortages became an acute bottleneck for Airbus in 2025, forcing the manufacturer to build so-called gliders – planes without engines – in order to keep production lines moving.

While supplies caught up by the end of 2025, the discovery of faulty fuselage panels on the A320 family then prompted Airbus to lower its delivery target in the final weeks of December to about 790 units.

The planemaker’s deliveries in January sank to its lowest level in any month since 2020, marking the weakest start to a year in at least a decade. In the meantime, rival Boeing has been able to recover from years of crisis and hand over the highest number of planes since 2018. 

Airbus reported adjusted earnings before interest and taxes in the fourth quarter of €2.98 billion, coming above the average estimate of analysts tracked by Bloomberg.

Revenue rose 5 per cent to €25.98 billion, said the company. Analysts had estimated revenue of €26.38 billion. BLOOMBERG