Faury cautions that escalating trade tensions and global political uncertainty are reshaping risks for the aerospace industry despite Airbus posting solid results.
Airbus CEO Guillaume Faury has warned that the world’s largest aircraft maker must prepare for new geopolitical risks after trade tensions last year caused “significant” logistical and financial damage to the company.
In an internal memo to employees seen by Reuters, Faury said the start of 2026 had been marked by an unusually high number of crises and unsettling geopolitical developments, calling on staff to respond with greater solidarity and self-reliance.
“The industrial landscape in which we operate is sown with difficulties, exacerbated by the confrontation between the United States and China,” Faury said, adding that multiple trade pressures had already inflicted “significant collateral damage, logistically and financially.”
Airbus declined to comment on the internal communication. The memo was circulated amid growing geopolitical frictions involving the United States, China, and key Western allies. Airbus is a major supplier to European defence programmes, making it particularly sensitive to shifts in global security dynamics.
Trade tensions intensified last year after US President Donald Trump announced sweeping tariffs, prompting China to impose restrictions on rare earth exports. Washington later temporarily halted exports of engines and other critical components to China, which uses them for its domestically developed C919 aircraft. US-made components are also required for Airbus aircraft assembled in China, exposing the European plane maker to cross-border supply disruptions.
Although the aerospace sector later secured a partial exemption from US tariffs, Faury warned that the fallout from trade friction continues to weigh on operations.
Despite these challenges, the Airbus chief praised the company’s 160,000 employees for delivering “good results” in 2025, without providing further details ahead of the group’s earnings announcement scheduled for February 19.
Faury said Airbus Defence and Space had emerged on a stronger footing following a deep restructuring, while Airbus Helicopters continued to deliver consistently strong performance. He also highlighted progress in cost-cutting initiatives in the commercial aircraft division, which helped Airbus maintain its financial targets despite cutting delivery goals last year due to flawed fuselage panels.
The CEO stressed the need for tighter operational discipline following Airbus’s largest-ever recall in November, which involved a software upgrade. “We must be more rigorous in managing our systems and products in general,” he said.
While post-pandemic supply chains have shown signs of improvement, Faury cautioned that they remain a source of disruption, particularly in engine availability. Airbus has faced persistent delays linked to engines supplied by Pratt & Whitney and CFM, affecting deliveries of its A320-family aircraft.
Looking ahead, Faury signalled a sharper focus on profitability and cash generation through the remainder of the decade, as Airbus and rival Boeing prepare for their next major aircraft development cycle.
He said the 2030s would be shaped by the development of a successor to the A320 family, expected to enter service later in the decade. Boeing is widely expected to pursue a similar path, though it has said its near-term priority remains reducing debt.
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