PARIS, Jan 25 (Reuters) – Airbus faced “significant” logistical and financial losses last year from U.S. protectionism and trade tensions with China and must prepare to adapt to disturbing new geopolitical risks, the head of Airbus warned employees.
“2026 begins with an unprecedented number of crises and disturbing geopolitical developments. We should continue to move forward in a spirit of solidarity and self-reliance,” Chief Executive Guillaume Faury said in an internal letter seen by Reuters.
“The industrial environment we live in is fraught with difficulties, and these difficulties are exacerbated by the confrontation between China and the United States.”
Airbus declined to comment on internal communications.
Faury did not point to geopolitical developments in the memo, which was circulated last week amid disunity between Washington and its allies over Greenland and NATO’s role. Airbus is a major European defense supplier.
He said multiple trade pressures had caused “significant logistical and financial collateral damage”.
Last April, U.S. President Donald Trump announced sweeping tariffs, prompting China to restrict rare earth exports. Washington later temporarily froze exports to China of engines and other key parts used in China’s C919 jets. Airbus planes assembled in China also require American parts.
The aerospace industry has received partial exemptions from U.S. tariffs.
Faury congratulated the group’s 160,000 employees on what he called an overall “good result” in 2025 despite the trade turmoil, without elaborating. Airbus releases results on February 19.
Airbus Defense and Space is “now on a stronger footing as a result of a deeper restructuring,” he said. Airbus Helicopters “its performance strength is very consistent.”
Recall lessons
Faury said Airbus “must” learn lessons from its largest-ever recall in November, which involved a software upgrade.
Days later, Airbus was forced to cut delivery targets due to defects in the fuselage panels, but maintained financial targets – partly due to progress on a commercial cost-cutting program, Faury said.
“We have to be more rigorous about our systems and our products,” Faury said.
The CEO said supply chains have improved post-pandemic but remain a source of disruption.
“Our most serious difficulties are with the Pratt & Whitney and CFM engines,” he said.
Recently retired commercial CEO Christian Scherer said earlier this month that the A320 family of engines was still late and singled out Pratt & Whitney, which declined to comment.
(Reporting by Tim Heffer; Editing by Susan Fenton)