Airbus CEO Guillaume Faury Talks Earnings, Delivery Delays

Summary

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

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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.

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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.

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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]

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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

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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.

Transcript

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[Nathan Hager]

Bloomberg Audio Studios Podcasts Radio.

[Podcast Host / Interviewer]

News let's talk about Airbus shares just barely finishing the day in the green. That's after they reported third quarter adjusted EBIT that beat estimates. But it's not all good news. The CEO also sounding the warning bell that Airbus deliveries remain very backloaded. I'm pleased to say that that CEO joins us now. His name is Guillaume for it. He is the CEO of Airbus. Guillaume, great to have you with us. Let's talk about this target. You say that you're sticking to the target to deliver 820 aircraft to customers this year. You've only delivered about 507 through September. So what gives you the confidence that you'll be able to hit those numbers come the end of 2025?

[Guillaume Faury]

And the fact that we are fully prepared, that we are already close to end of October and the fact that the one of the reasons for being backloaded is the lack of variety of engines for our single line. We were with 60 Gliders Media we closed the quarter being down to 32 Gliders and 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 of the year. But we think we have the ingredients. We're prepared to come close to the 820 deliveries we have guided for.

[Podcast Host / Interviewer]

And would you say that the engines are still your biggest bottleneck at this moment? You mentioned the gliders for example. I know you had to park some ready made planes because of that engine issue. So is that the biggest issue? Would you when it comes to the state of your supply chain, the majority.

[Guillaume Faury]

Of which we're delivering are the A320 aircraft and indeed for those aircraft the main bottleneck is the engine is the engine availability from both CFM and Prod. We were with a very difficult situation and media things are improving. We think we're going to reach our numbers as I said before for 2025. But we will have persisting tensions on availability of engine in 26 and maybe in 27 as well.

[Nathan Hager]

I am cur Guillaume. I mean we've heard from a lot of the major airline executives that have raised some concerns here about the backlog in Addition to just the general problems in getting those engines onto those gliders, there's now, at least here in the United States the issue of a government shutdown. That of course effectively brings to a halt or at least a slowdown in any sort of certification here. Have you had to address that at all so far?

[Guillaume Faury]

Not to a major extent. We are not significantly exposed to this situation. Again, the main challenges we have are really on the delivery of aircraft, not on the certification of them we have recently certified. I mean last year, the XLR that's behind us. And the accelerate, the A321 accelerator is a great airplane that is now in service, that's behind us. And the next certification moving forward will be for the A350 freighter. But that's not today a short term bottleneck. We have to start flying with the aircraft. That will be the case in 2026. So certification is for later. We plan enter into service in 2027. So we hope in the meantime we will be able to restart or to have appropriate and efficient certification work with the faa, the primary certification authorities, easa. And we are currently working with EASA for preparing the certification file of the.

[Nathan Hager]

350 freighter with regards to your operations here in the United States. Whether it has to do with the certification, whether it has to do with the shutdown or the broader issues. What are the deliveries, the timeline for deliveries coming out of the plant in Alabama?

[Guillaume Faury]

Well, Alabama is one of our production sites. You know that for the A 320 family, we are now relying on Mobile in in the US in Alabama, in Toulouse and Hamburg in Europe, and in on changing in China for Mobile. We have recently inaugurated the second final assembly line for the 320. So we are clearly ramping up proportionately more in the US than in the rest of the world. And we have an A220 final assembly line. So Mobile, Alabama will soon become the fourth largest production site of commercial aircraft in the world. And it's a neighbor site in the US but basically we're ramping up a320 globally towards the right 75. And Mobile, Alabama will take its share.

[Podcast Host / Interviewer]

And you mentioned the A220. When it comes to your production target, you actually lowered that as well. And I would love a little bit more detail on what led to that decision and when, you know, we might see some of these supply chain challenges that you're dealing with beyond snarl when it comes specifically to that body.

[Guillaume Faury]

I like to to highlight the fact that we are not reducing production, we are reducing the speed of ramp up on the A220, we are actually doubling production roughly within two years from 24 to 26. And we have decided to go from what we were anticipating for next year that was rate 14 to actually rate 12. So moving up from rate 6 a few quarters ago, few years ago to the right 12, we are on that trajectory. Things are moving forward quite well in 2025, but right 12 is a challenging target. We have to integrate as well the work packages from spirit on the 220, the wings and other smaller work packages. So we have a lot on our plate. We are also introducing progressively engine improvements to to improve the durability of the engine for customers. So a lot of work on the 220, very fast and steep ramp up and we think that's good enough in terms of quantity of work and challenges moving from 25 to 26.

[Nathan Hager]

I have to ask you about the defense business. Obviously that was a bit of a boost for you in the most recent period. Guillaume, is this a long term story or a one off?

[Guillaume Faury]

It's a midterm story for sure. Maybe a long term one as well. You know that Europe has relied on the United States for a very long time when it comes to security of Europe and we are now in different times. Europe is really ramping up in its ability to secure itself, to defend itself, which means significant increase in defence budgets for the main countries of Europe and the NATO members in Europe. So from that perspective, it's a mid term or even long term perspective. And on the short term it comes with orders for more equipment, for development of new ones. And indeed we have a tailwind of when it comes to our numbers and our growth coming from defense against that backdrop.

[Podcast Host / Interviewer]

And we should also talk about your your ambitions when it comes to space as well. And to compete against Elon Musk's Space X. I know that you're merging some of your operation with regional peers, trying to create a regional venture. That project expected to be running in 2027. Guillaume, would you anticipate though you might run into any sort of regulatory challenges here or is Trans 2027 looking like a firm date?

[Guillaume Faury]

Well, we just signed the memo on the above understanding with Dallas and Leonardo to create that European player that is able to or will be able to compete at scale on the global competitive landscape. So that's really good. We are not only willing to compete with with Space X and Starlink. Obviously that's a big player and a fast moving player, but we are serving many other needs, including defense and across the world that creates a company that has the potential to be very competitive, to serve the interest and the the needs of the European players and more global players. As I said, we have to go through the regulatory process to the antitrust. That's something that is now ahead of us. Well, I think Europe has moved forward as well, understanding that it needs to be able to compete globally.

[Nathan Hager]

Yeah.

[Guillaume Faury]

And we hope that we will be supported for what we're doing with we have to demonstrate compliance with the European regulations and other regulations. We're starting that work now.

[Nathan Hager]

All right, Guillaume, really appreciate you taking time for us, the CEO of Airbus there. Guillaume, for on the heels of the earnings just out most recently, but a big focus right now on potential delivery.

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