Airbus Cuts Jet Production Target Amid Pratt & Whitney Engine Shortages, Q4 Profit Jumps 17%

Airbus has revised its aircraft production plans after ongoing engine supply shortages from RTX subsidiary Pratt & Whitney disrupted its expansion strategy. The world’s largest commercial aircraft manufacturer announced it now expects to reach a narrowbody jet production rate of 70 to 75 aircraft per month by the end of next year, with output stabilizing at 75 per month beyond 2027. Previously, Airbus had projected hitting a rate of 75 jets per month in 2027, increasing from the current pace of roughly 60 aircraft monthly.

The adjustment highlights continued strain in the global aerospace supply chain, particularly related to aircraft engines. Airbus and Pratt & Whitney have reportedly been in prolonged discussions over delivery volumes for 2026 and 2027. Typically, such supply agreements are finalized about 18 months in advance, but negotiations remain unresolved. Airbus stated that Pratt & Whitney’s inability to commit to the ordered engine quantities is directly affecting its production ramp-up and financial guidance for the year.

The announcement follows earlier reports raising concerns about whether Airbus could maintain its ambitious production targets due to engine availability issues. Pratt & Whitney did not immediately comment on the latest developments.

Despite the production setback, Airbus posted strong fourth-quarter financial results. The company reported adjusted operating profit of €2.98 billion, marking a 17% increase compared to the same period last year. Revenue rose 5% to €25.98 billion. Analysts had forecast average profits of €2.87 billion on revenue of €26.51 billion, making Airbus’ earnings performance stronger than expected, though slightly below revenue estimates.

Looking ahead, Airbus forecasts 870 aircraft deliveries in 2026, up from 793 deliveries last year. The company also projects adjusted operating profit of approximately €7.5 billion, signaling confidence in long-term demand for commercial aircraft despite ongoing supply chain disruptions.