Bloomberg Talks Airbus CEO Guillaume Faury Talks Earnings
Jul 31, 2025
Airbus is grappling with significant supply chain challenges, especially regarding engine deliveries that are delaying aircraft production. Despite these hurdles, the company finds itself with strong demand and a robust backlog of orders. The discussion dives into the strategies for increasing A320 production amidst these setbacks. Additionally, the potential impact of a US-EU trade agreement on Airbus's operations is explored, highlighting both the challenges and opportunities on the horizon.
AI Snips
Chapters
Transcript
Episode notes
Engine Supply Chain Bottleneck
- Airbus faced a major delivery slowdown due to 60 finished aircraft missing engines.
- This caused negative free cash flow despite strong production, showing supply chain criticality.
Causes of Engine Delivery Delay
- Engine delivery delays stemmed mainly from industrial issues and a seven-week strike at Safran.
- Recovery is underway, with expectations to normalize deliveries by year-end.
Strong Demand and Backlog Growth
- Airbus sees very strong demand, surpassing supply capability, maintaining the industry's biggest backlog.
- The backlog continues growing, indicating no immediate risk to business growth.