Airbus Chief Executive Guillaume Faury told industry attendees on Tuesday that, despite a string of challenges for carriers, the manufacturer has not observed any substantial wave of order cancellations or deferrals. According to Faury, airlines that have "been through hell" in recent years are nonetheless holding onto their order books, an indication of sustained long-term demand for new aircraft.
Faury pointed to several ongoing pressures on the broader airline sector, including elevated fuel prices that have been driven by the conflict involving the U.S. and Israel with Iran. Those developments have squeezed jet fuel availability and disrupted principal air corridors, forcing carriers onto longer, costlier routes. Still, the CEO said such factors have not produced any meaningful erosion in demand that would prompt airlines to pare back purchase commitments.
On supply-chain dynamics, Faury said Airbus is in "a much better place in terms of supply chain now," while also acknowledging remnants of earlier constraints. He singled out Pratt and Whitney as a particular point of frustration, warning that the supplier’s engine delivery cadence could cause Airbus to miss its internal production goals. Faury said the company "might fall short of its production goal depending on engine deliveries from the supplier."
Airbus has set a target production rate of 75 aircraft for 2027, and Faury emphasized that reaching that tempo will depend on the timing and volume of engines received from suppliers. He also told the audience to expect a record second half of the year for the company.
Regulatory matters entered the discussion as well. Faury criticized the regulatory environment in Europe, saying that "with the European regulatory burden, it's too hard to be competitive globally." He framed regulation as a headwind that complicates Airbus’s ability to match global competitiveness under current rules.
On orders and deliveries, Airbus has recorded 815 gross orders since January, which net out to 762 after accounting for cancellations. The company projects it will deliver roughly 870 jets in 2026.
Contextual takeaways
- Airlines are maintaining order books despite increased operational costs and route disruptions.
- Supply-chain recovery is uneven: improvements overall but critical supplier risk remains for engine deliveries.
- Regulatory pressure in Europe is seen by Airbus leadership as a competitive disadvantage.