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Airbus CEO Discusses Potential Shift in Deliveries Amid U.S. Tariff Concerns
The emblem of Airbus stands prominently at the company’s facility in Saint-Nazaire, France, showcasing the aerospace giant’s significance in global aviation.
In a recent interview with CNBC, Guillaume Faury, the CEO of Airbus, articulated a strategic pivot the company might take in response to potential U.S. tariffs affecting deliveries. He indicated that should significant barriers arise in delivering aircraft to the U.S. market, Airbus would consider prioritizing its non-U.S. customers, citing strong demand elsewhere in the world.
“We have a large demand from the rest of the world. If we encounter substantial difficulties in U.S. deliveries, we can adjust our strategy by accelerating shipments to other eager clients,” Faury stated during the discussion about the company’s financial performance for the year.
Faury acknowledged the uncertainty surrounding potential tariffs, expressing the need for readiness to adapt swiftly to the evolving situation. He pointed out concerns related to the looming tariffs and their ambiguous impact on the trading landscape, particularly in connection with previous tariff threats from the U.S. government.
Despite the potential challenges, Faury emphasized that Airbus has already made significant investments in U.S. operations. The company has increased its procurement from American suppliers and has established a substantial manufacturing presence, including facilities in Mobile, Alabama, and additional assembly lines for the A220 and A320 aircraft, with plans for further expansion to cater to domestic demand.
Airbus’s extensive clientele includes major U.S. airlines such as American Airlines, Delta, and United. Faury highlighted the company’s flexibility in the face of potential tariffs, underscoring the interconnected nature of the aerospace industry between North America and Europe. He expressed optimism, suggesting that both sides would be negatively impacted by tariffs, thereby advocating for a resolution that minimizes disruption.
The company’s target for approximately 820 aircraft deliveries in 2025, as Faury mentioned, aims to provide clarity amid uncertainties, reflecting what the company believes is achievable without the hinderance of tariffs.
However, Airbus is contending with a myriad of supply chain challenges, which are inhibiting its production capacity and affecting its backlog of over 8,000 aircraft. During the interview, Faury confirmed the company’s growing revenue, which climbed 6% in the last year, alongside an 8% drop in adjusted operating profit, which totaled 5.35 billion euros ($5.59 billion).
Moreover, Faury pointed out substantial setbacks in Airbus’s defense and space division, which registered a loss of 656 million euros for the year. He acknowledged that competition from companies such as SpaceX and difficulties stemming from previous investments had adversely affected the space segment’s performance.
“We underestimated the risks compared to what we faced in reality,” Faury admitted, mentioning ongoing restructuring efforts within the division to address and resolve these challenges.
In context, Airbus’s overall performance stands in stark contrast to that of its U.S. competitor Boeing, which reported a substantial annual loss of $11.83 billion for 2024, highlighting Airbus’s resilience within a turbulent market landscape.
Source
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