Airbus Warns of Hit to A320 Jet Production From Pratt & Whitney Engine Shortage
The plane maker expects to make between 70 and 75 of the aircraft a month by the end of next year, compared with a prior target of 75
Airbus AIR 2.11%increase; green up pointing triangle said a persistent Pratt & Whitney engine shortage had forced it to slow down production of its best-selling A320, the latest setback for the company as it struggles to leave supply-chain snags behind.
The European plane maker expects to make between 70 and 75 A320 aircraft a month by the end of next year, compared with a prior target of 75.
“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. Pratt & Whitney parent RTX didn’t immediately respond to a request for comment.
Airbus said revenue for the three months to the end of December grew 5% on year to 25.98 billion euros, equivalent to $30.61 billion.
Net profit increased 6% to 2.58 billion euros, while adjusted earnings before interest and taxes—Airbus’s preferred measure of profitability—climbed 17% to 2.98 billion euros.
Analysts had expected revenue of 26.51 billion euros, a net profit of 2.36 billion euros and adjusted EBIT of nearly 2.87 billion euros, according to market consensus provided by the company based on estimates from 20 analysts.
Airbus said it would propose a 2025 dividend of 3.20 euros a share at its shareholders’ meeting on Apr. 14, compared with a dividend of 2 euros a share and a special dividend of 1 euro a share for the previous year.
The company is forecasting roughly 870 commercial aircraft deliveries this year, more than the 793 planes it dispatched in 2025. Airbus has dispatched 19 aircraft so far this year.
For 2026, Airbus expects adjusted EBIT of around 7.5 billion euros. Free cash flow before customer financing—a closely watched metric by analysts and investors—is projected at around 4.5 billion euros.