PARIS, Feb 19 (Reuters) - Airbus softened its main jet production target on Thursday, citing "significant shortages" of engines from one of its main suppliers, RTX unit Pratt & Whitney, as it reported
Airbus Adjusts Production Goals Amid Engine Supply Dispute
By Tim Hepher and Benjamin Mallet
PARIS, Feb 19 (Reuters) - Airbus has shaved its main jet production goal in a dispute with Pratt & Whitney over engine supply shortfalls and threatened to enforce its contractual rights as a tug of war for parts pushed its shares down 6%.
Airbus and Pratt & Whitney Dispute
The unusually public criticism from the world's largest planemaker follows months of tensions over the allocation of engines and spare parts between aircraft assembly lines and the repair facilities where engine makers make most of their profit.
Airbus officials said they had been forced to scale back production plans and temper financial guidance for 2026 after Pratt & Whitney reconsidered initial proposals concerning engine volumes and then "failed" to strike a formal supply agreement.
"We are very dissatisfied and we don't agree with it," CEO Guillaume Faury told analysts, adding that Airbus would "enforce our contractual rights," though this would take time.
Airbus CEO's Response
Pratt & Whitney parent RTX declined to comment. The engine maker has said it is in constant dialogue with Airbus.
Faury's outspoken comments point to one of the fiercest potential disputes in commercial aviation since Airbus clashed with Qatar Airways in a UK court over damage to A350 jets in 2022.
Asked whether Airbus had initiated legal action against Pratt, Faury said it had begun a "process" without elaborating.
Impact on Production Targets
Airbus now targets output for the narrowbody A320neo series - its best-selling model - between 70 and 75 jets a month by the end of next year, stabilising at 75 a month beyond 2027. It had previously predicted 75 a month in 2027, up from 60 now.
Overshadowing record Airbus profits for 2025, the industrial setback led to what analysts described as disappointing goals for 2026. Airbus predicted 870 jet deliveries, up from 793 last year, and adjusted operating profit around 7.5 billion euros.
Airbus reported fourth-quarter adjusted operating profit of 2.98 billion euros ($3.51 billion), up 17%, as revenue rose 5% to 25.98 billion euros. Analysts were on average expecting profit of 2.87 billion euros on revenues of 26.51 billion euros.
Challenges in Aircraft Production
PRESSURE ON AIRCRAFT PRODUCTION TARGET PLANNING
The output decision confirms behind-the-scenes pressure on aircraft planning after Reuters reported this month that the Pratt dispute had put Airbus' main production target at risk.
Faury acknowledged Pratt was facing a number of challenges as it deals with a queue for inspections from a production problem, on top of broader industry supply problems.
But he told analysts the onus was on the U.S. engine maker to increase production to meet competing demands of aircraft factories and overloaded airline maintenance plants.
RTX CEO Chris Calio told analysts in late January that Pratt & Whitney had to strike the right balance given demand from airlines, but stressed overall deliveries rose 50% last year.
Pratt & Whitney makes engines for 40% of Airbus narrowbody A320neo-series jets.
After sparring with alternative engine supplier CFM over similar delays just over a year ago, Airbus first went public with concerns over Pratt & Whitney shipments in January.
Last week CFM indicated it was not ready to wade into the dispute by boosting its own deliveries to Airbus, saying its priority was to meet its existing supply commitments.
Additional Industrial Challenges
Engines are not the only industrial problem for Airbus. In December, it cut delivery forecasts after flaws were discovered in panels from a Spanish supplier. Faury said those problems had weighed on jet deliveries in the first two months of this year.
Airbus said it was increasing its output target for the smaller A220 to 13 a month in 2028 from 12 a month in 2026.
($1 = 0.8484 euros)
(Additional reporting by Michal Aleksandrowicz; Editing by Muralikumar Anantharaman, Sonali Paul and Jane Merriman)
