Airbus Slams Pratt & Whitney, Lowers A320neo Output Goals, Shares Fall 6%

CEO Guillaume Faury expressed strong dissatisfaction, stating Airbus would "enforce our contractual rights" after Pratt & Whitney reportedly failed to finalize a supply agreement. The company now aims for 70–75 A320neo series jets per month by end-2027, stabilizing at 75 monthly beyond 2027, a reduction from its previous goal of 75 per month in 2027.

This industrial setback, despite a 17% rise in Q4 core profit to 2.98 billion euros, has overshadowed Airbus's financial performance and led to what analysts describe as disappointing goals for 2026, including 870 jet deliveries. The dispute highlights ongoing supply chain pressures in the aerospace industry, with Pratt & Whitney engines powering 40% of Airbus's A320neo jets.

Airbus's shares fell 6% following the announcement, underscoring the market's concern over the production challenges.