Bloomberg Talks – Episode Summary
Episode: Airbus CEO Guillaume Faury Talks Earnings, Delivery Delays
Date: October 30, 2025
Host: Bloomberg
Guest: Guillaume Faury, CEO of Airbus
Episode Overview
This episode centers on a candid conversation with Guillaume Faury, the CEO of Airbus, following the company's Q3 earnings report. The discussion delves into Airbus’s delivery targets, ongoing production and engine supply challenges, ramp-up efforts in the US and globally, defense and space ambitions, and the broader context of the aerospace industry in 2025.
Key Discussion Points & Insights
1. Q3 Earnings and Delivery Backlog
- Context: Airbus reported adjusted EBIT that beat expectations, but faces challenges with aircraft deliveries, particularly due to engine supply issues.
- Delivery Target Confidence:
- Faury's Confidence: He stresses preparedness for delivering close to 820 aircraft by year-end, despite many being backloaded into Q4 due to engine shortages.
- Quote:
“We think we're going to have the engines we need to deliver those planes before the end of the year. So it's indeed a lot of work in the last quarter... But we think we have the ingredients.” – Guillaume Faury [01:21]
2. Engine Shortages as Main Bottleneck
- Details:
- Most of the delivery bottlenecks pertain to the A320 family, with engine availability being the key issue (specifically from suppliers CFM and Pratt & Whitney).
- Slowed production led to a glut of "gliders" (completed planes without engines), a situation that's slowly improving.
- Long Term View: Faury anticipates ongoing tension in engine supply possibly through 2027.
- Quote:
“We will have persisting tensions on availability of engine in 26 and maybe in 27 as well.” – Guillaume Faury [02:25]
3. U.S. Certification and Government Shutdown Impact
- Certification Not a Major Issue:
- Current certification challenges (potentially caused by US government shutdowns) have little immediate effect on Airbus’s deliveries; focus is on engine availability, not regulatory holdups.
- Next big certification: Airbus A350 freighter, with service entry targeted for 2027.
- Quote:
“The main challenges we have are really on the delivery of aircraft, not on the certification of them we've recently certified.” – Guillaume Faury [03:04]
4. US Operations – Alabama Facility Ramp-Up
- Expansion in Mobile, Alabama:
- A320 and A220 production being scaled up, with a new final assembly line inaugurated.
- Mobile soon to become the world’s 4th largest commercial aircraft production site.
- Ramp-up in the US is proportionately higher than in other Airbus sites.
- Quote:
“Mobile, Alabama will soon become the fourth largest production site of commercial aircraft in the world.” – Guillaume Faury [04:43]
5. A220 Production Rate Adjustment
- Clarification:
- Airbus is slowing the speed of ramp-up, not cutting production. Target is to move from rate 6 to rate 12 by 2026 (previously aimed for 14), reflecting pace adjustment rather than retreat.
- Integration of Spirit’s work packages, engine improvements, and new suppliers all add to complexity.
- Quote:
“We are not reducing production, we are reducing the speed of ramp up on the A220... Right 12 is a challenging target.” – Guillaume Faury [05:32]
6. Defense Growth Prospects
- Medium/Long-Term Growth:
- Recent defense business growth is more than a short-term bump. With European countries increasing defense budgets, Faury sees sustained opportunity.
- Quote:
“Europe is really ramping up in its ability to secure itself, to defend itself... It’s a mid-term or even long-term perspective.” – Guillaume Faury [06:44]
7. Space Ambitions and Competition with SpaceX
- European Partnership:
- Airbus aims to compete on the global space stage, having signed a MoU with Dassault and Leonardo. The joint venture is expected to launch in 2027.
- Main driver: Need for Europe to compete at scale with the likes of SpaceX and Starlink, serving not just commercial but also defense sectors.
- Quote:
“We just signed the memo of understanding with Dassault and Leonardo to create that European player… We are not only willing to compete with SpaceX and Starlink… but we are serving many other needs, including defense and across the world.” – Guillaume Faury [07:51]
- Regulatory approval process is the next step.
Notable Quotes & Memorable Moments
-
On Delivery Bottleneck:
“For those [A320 family] aircraft the main bottleneck is the engine… Things are improving. We think we're going to reach our numbers as I said before for 2025.” [02:13]
-
On US Plant Expansion:
“We have recently inaugurated the second final assembly line… We are clearly ramping up proportionately more in the US than in the rest of the world.” [04:33]
-
On Europe’s Defense Investments:
“It comes with orders for more equipment, for development of new ones… Indeed we have a tailwind… coming from defense against that backdrop.” [07:16]
-
On Competing Globally in Space:
“Europe has moved forward… that it needs to be able to compete globally.” [08:38]
Timestamps for Key Segments
- [01:10] Delivery targets and engine supply bottleneck
- [02:07] Details on engine shortage and supply chain
- [02:59] Impact of US certification/government shutdown
- [04:02] Alabama facility ramp-up and global expansion
- [05:09] A220 production ramp-up adjustment
- [06:30] Growth in Airbus’s defense business
- [07:25] Space segment ambitions & European joint venture plans
Summary Flow & Takeaways
The episode maintains a matter-of-fact, forward-looking tone, typical of executive interviews. Faury is frank about supply chain struggles but maintains optimism and emphasizes Airbus’s strategic expansion, especially in the US and in space/defense. The conversation provides a sharp look at the complexities of modern aerospace manufacturing in a globally tense and technologically competitive era, with a CEO projecting resilience and readiness for both immediate and long-term challenges.