By Tim Hepher
PARIS, Jan 25 (Reuters) – The head of Airbus has warned staff that the plane maker must be ready to adapt to unsettling new geopolitical risks after facing “significant” logistical and financial damage from U.S. protectionism and U.S.-China trade tensions last year.
“The beginning of 2026 is marked by an unprecedented number of crises and by unsettling geopolitical developments. We should proceed in a spirit of solidarity and self-reliance,” CEO Guillaume Faury said in an internal letter seen by Reuters.
“The industrial landscape in which we operate is sown with difficulties, exacerbated by the confrontation between the U.S. and China.”
Airbus declined comment on internal communications.
Faury did not identify geopolitical developments in the memo, which was circulated last week against the backdrop of disunity between Washington and allies over Greenland and the role of NATO. Airbus is a major European defence supplier.
He said multiple trade pressures had already “caused significant collateral damage, logistically and financially”.
Last April, U.S. President Donald Trump announced sweeping tariffs, prompting Chinese restrictions on rare earth exports. Washington later temporarily froze exports of engines and other key components to China, which uses them for its C919 jet. U.S. parts are also needed for Airbus jets assembled in China.
Aerospace has won a partial reprieve from U.S. tariffs.
Despite trade upheaval, Faury congratulated the group’s 160,000 staff for what he termed “good results” overall in 2025 without elaborating. Airbus publishes results on February 19.
Airbus Defence and Space “is now on a much stronger footing thanks to its deeper restructuring,” he said. Airbus Helicopters is “remarkably consistent in the strength of its performance”.
RECALL LESSONS
Faury said it was “imperative” that Airbus learn from its biggest ever recall in November, involving a software upgrade.
Days later, Airbus was forced to cut delivery goals due to flawed fuselage panels but maintained financial goals – due in part, Faury said, to progress on a commercial cost-cutting plan.
“We must be more rigorous in managing our systems and products in general,” Faury said.
The chief executive said post-COVID supply chains had improved but remained a source of disruption.
“Our most serious difficulties have been with the Pratt & Whitney and CFM engines,” he said.
Recently retired commercial CEO Christian Scherer said earlier this month that A320-family engines continued to arrive late and singled out Pratt & Whitney, which declined to comment.
Faury signalled a focus on the bottom line for the rest of this decade, building up a warchest as Airbus and Boeing gird for their next aircraft development battle.
The 2030s will be dominated by development of an A320 successor to enter service in the “latter part of the decade”, he said. Boeing is widely expected to follow a similar path, though it has said its near-term priority is reducing debt.
“Achieving profitable growth in the second half of the 2020s is essential: we need to approach this crucial (2030s) period in truly ‘Olympic’ shape,” Faury told employees. “The future of Airbus will depend on our ability to execute this strategy.”
(Reporting by Tim Hepher; Editing by Susan Fenton)
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