Airbus said on Thursday it is scaling back the pace of its narrowbody production ramp-up as it grapples with "significant shortages" of engines from one of its principal suppliers, Pratt & Whitney, a unit of RTX. The move accompanies the company's announcement of stronger core results for the fourth quarter, with adjusted operating profit rising 17%.
The planemaker now targets a narrowbody output run rate of between 70 and 75 jets per month by the end of next year, with production stabilising at 75 per month beyond 2027. That marks a moderation from its earlier expectation of reaching a monthly rate of 75 in 2027, up from the current level of roughly 60 jets a month.
Airbus cited an unresolved disagreement with Pratt & Whitney over engine deliveries and volumes as the principal constraint. The two firms have been at odds over delays for months, and according to Airbus they have not finalised an agreement on volumes for either 2026 or 2027. The company noted that such volume agreements are typically settled about 18 months in advance.
In a direct statement, Airbus said: "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". Pratt & Whitney did not immediately respond to a request for comment.
Despite the supply-chain challenge, Airbus reported improved fourth-quarter financial results. Adjusted operating profit for the quarter rose 17% to 2.98 billion euros, while revenue increased 5% to 25.98 billion euros. These outcomes compared with analysts' average expectations of 2.87 billion euros in adjusted profit on revenues of 26.51 billion euros.
Looking ahead to 2026, Airbus forecasts delivering 870 jets, up from 793 deliveries in the prior year, and anticipates adjusted operating profit of around 7.5 billion euros.
Airbus' decision to temper its ramp-up schedule underscores the operational sensitivity of aircraft production to engine supply commitments. The company has framed Pratt & Whitney's lack of confirmed engine volumes as directly constraining this year’s guidance and the intended acceleration to higher production rates.
Market and industry stakeholders will be watching whether the two parties reach a timely agreement on engine volumes for 2026 and 2027, given the usual advance timing of such commitments and the potential implications for Airbus' production trajectory.