Airbus CEO Guillaume Faury Talks Next-Gen Single-Aisle Aircraft

Summary

Bloomberg Talks: Airbus CEO Guillaume Faury Talks Next-Gen Single-Aisle Aircraft

Date: July 20, 2026
Host: Guy Johnson (Bloomberg)
Guest: Guillaume Faury, CEO of Airbus

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Episode Overview

This episode features a lively and revealing conversation from the Farnborough Air Show with Guillaume Faury, CEO of Airbus. The discussion centers on Airbus’s booming order book, ongoing supply chain and engine challenges, the contentious race to produce next-generation single-aisle aircraft before Boeing, and broader defense and European defense policy topics. Faury speaks candidly about industry shifts, technology bets, and strategic priorities for the coming decade.

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Key Discussion Points & Insights

1. Demand and Backlog at Airbus

• Strong Start at Farnborough:
  • Faury reports robust demand despite global economic uncertainties and high oil prices.
  • Airbus currently holds a backlog exceeding 9,200 aircraft.
  • Demand is especially high for fuel-efficient models due to current market conditions.
  • Quote:

    "We have a backlog of more than 9,200 aircraft and we continue to get fresh orders for short distance aircraft or the long range aircraft." — Guillaume Faury [01:06]

• Impact of Global Crises:
  • Middle East instability and $90/barrel oil are actually pushing airlines toward more efficient planes.

2. Production Rates and Supply Chain Pressures

• Ambitious Output Targets:
  • Airbus is targeting production rates of 75 narrow-body jets (rate 75), with clear investments made and supplier support in place.
  • 2026 target: around 870 aircraft.
  • Achieved a 15% production increase over first half of 2025.
  • Quote:

    "We have made the investment and we have the support from the supply chain. To get there. So there is absolutely no doubt in my perspective that we'll get to the rate 75." — Guillaume Faury [02:21]

• Dealing with Engine Issues:
  • Pratt & Whitney engine supply remains a bottleneck, but Faury insists this is not indicative of system-wide issues.
  • Airbus remains on target with all major lines (A320, A350, A330, A220).
  • Quote:

    "Let's not think that the Pratt and Witness situation means that we have supply chain issues everywhere. That's not the case." — Guillaume Faury [03:19]

3. Next-Generation Aircraft Race

• Timing the Market Entry:
  • Airbus aims to launch the next-gen single-aisle aircraft in 2030 with service entry in the latter 2030s—possibly ahead of Boeing.
  • The aircraft targets a 25% fuel burn improvement.
  • Quote:

    "We want to launch the next generation single aisle in 2030 for an entry into service in the second part of the next decade." — Guillaume Faury [04:18]

• Technology Decisions Underway:
  • Key tech choices (e.g., open rotor engines vs. geared turbofan) are under evaluation, focused on efficiency but mindful of risk.
  • Mature decisions are expected "in the next couple of years."
  • Quote:

    "An important choice is whether we maintain the traditional now gear turbofan or if we go for an open auto, which has better fuel efficiency but comes with other type of risk." — Guillaume Faury [04:54]

4. Defense Industry & European Autonomy

• Future Fighter Jet Programs:
  • Airbus remains part of Europe's FCAS (Future Combat Air System), though the program's specifics are evolving.
  • Emphasizes the importance of "combat cloud" networking beyond just aircraft.
  • The path forward on 6th-gen fighter development depends on government decisions.
  • Quote:

    "The French President and the German Chancellor have decided last week to continue to work together, for instance on the... combat cloud that is so important for connecting the different things that will be flying in the air and in space." — Guillaume Faury [05:44]

• Relation with the UK and International Partnerships:
  • Airbus continues industry partnerships with Germany and Spain.
  • Faury avoids speculation about joining GCAP (UK, Italy, Japan program), deferring to political decisions.
• European Rearming and NATO:
  • Faury notes Europe cannot or should not rearm "without the Americans" and expects a more balanced, autonomous contribution.
  • Emphasizes the ongoing alliance within NATO for defense strategy.
  • Quote:

    "Europe wants to rearm. Europe wants to be more self-sufficient. And that's also what the Americans are expecting from Europe in NATO." — Guillaume Faury [06:52]

5. UK Defense Policy and Priorities

• Advice for New UK Prime Minister (Andy Byrne):
  • Faury calls for deeper NATO contribution and strong UK-EU cooperation in defense.
  • Warns that effective defense spending requires collaboration.
  • Quote:

    "Defence is an industry that works at the right scale and obviously Europe, the EU, needs the UK and vice versa." — Guillaume Faury [07:39]

• On Increasing Defense Budgets:
  • Advocates for increased, but more importantly, better-collaborated defense budgets ("3.5% or 5%" of GDP).
  • Quote:

    "It's really important that there is more money that comes to defense, and that's obviously part of the going to 3.5% or 5%. I think it's important that the money is well spent and well spent in Europe means working together, collaborating." — Guillaume Faury [08:01]

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Notable Quotes & Memorable Moments

• "We still see a very strong demand for products... The Middle East crisis is actually fooling some demand because price of oil is very high and fuel-efficient aircraft are in more demand." — Guillaume Faury [01:05]
• "We are preparing the next generation of single aisle. It will come with a fuel burn of around 25% [improvement]." — Guillaume Faury [04:30]
• On European defense autonomy: "Europe is not saying that they will in the future do everything themselves in defense, but they want to be able to do more by themselves. And a company like Airbus is contributing to this effort." — Guillaume Faury [06:54]
• Candid policy moment: "We wait and see and we'll be discussing with the Prime Minister when the Prime Minister is appointed." — Guillaume Faury [07:27]

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Key Timestamps for Important Segments

• [01:04] Strong demand, economic outlook
• [02:18] Production ramp-up, addressing engine and supply chain issues
• [04:12] Timeline and ambition for next-generation narrow-body aircraft
• [04:52] The open rotor engine decision and technology roadmap
• [05:29] Airbus's evolving role in European fighter jet programs
• [06:44] European defense, US cooperation, and industrial collaboration
• [07:16] UK defense priorities and policy outlook

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Summary Flow & Takeaways

Guillaume Faury outlines a confident path for Airbus amidst surging demand and geopolitical volatility. He is unwavering about the ramp-up to rate 75, openly addresses persistent engine challenges, and reinforces that Airbus remains on target with its output ambitions. The conversation’s centerpiece is the coming technological leap: Airbus is betting on a 25% more efficient, next-gen narrow-body aircraft for the late 2030s, with key design bets (like engine architecture) still in play. On defense, Faury stresses European partnerships, practical transatlantic cooperation, and smart spending over simple budget increases. For policymakers, his counsel is clear—defense progress and industrial competitiveness will depend on deep, genuine collaboration and strategic investment.

This episode delivers a timely, inside look at Airbus’s strategic calculus as global aviation and defense hit pivotal crossroads.

Transcript

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IBM, Airbus continues to outpace Boeing in China. Fresh orders from Air China and Hainan airlines worth about $18 billion add to the planemakers momentum at this year's Farnborough Air show. Bloomberg. Guys Johnson joins us now with the CEO of Airbus. Guy, take it away.

[Interviewer (Guy Johnson)]

Thank you very much indeed. Yeah, Guillaume for is here. He is the CEO of Airbus. Nice to see you.

[Guillaume Faury, CEO of Airbus]

Nice to see you.

[Interviewer (Guy Johnson)]

How's it going? Is the, is the demand story looking okay? At the moment I've got a Gulf War that's getting worse. I got an oil price that's at 90 bucks a barrel. Any sign that this show that consum consumers are starting to get a little bit more cautious again?

[Guillaume Faury, CEO of Airbus]

Well, it's the first day of the show and it started very strongly. We still see a very strong demand for products. We have a backlog of more than 9,200 aircraft and we continue to get fresh orders for short distance aircraft or the long range aircraft. The Middle east crisis is actually fooling some demand because price of oil is very high and fuel efficient aircraft are in more demand.

[Interviewer (Guy Johnson)]

Do you like the economy right now? Do you get a sense that what we're seeing at the moment is sustainable? It's or are you starting to get to get a little bit nervous?

[Guillaume Faury, CEO of Airbus]

Well, it's a very complex economy. It's a very complex world. Very fast changing, very unpredictable. But we have more visibility than others with the backlog we have with a very strong demand for, for transport, for commercial aviation and with defense. So I think given the environment we can't complain. Look at quite a bit of visibility.

[Interviewer (Guy Johnson)]

So you've got a really big backlog, particularly of the narrow body aircraft. You'd like to produce more of them, but you're struggling. You've well documented engine issues. You and I have joked in the past about building gliders. You'd like to produce a rate 75 but you probably can't. So what rate can you produce at? What are you doing right now?

[Guillaume Faury, CEO of Airbus]

We have a plan to go to rate 75 and we are equipped. We have made the investment and we have the support from the supply chain. To get there. So there is absolutely no doubt in my perspective that we'll get to the rate 75. And when we look at what we have achieved already in the first half of this year, we have increased by 15%1 5 compared to the first half of 2025. So we are progressing well. We are doing what we wanted to do, and we keep targeting around 870 aircraft for 2026. That is very consistent with the rate 75 rate, close to rate 75 or at rate 75 for the end of next year.

[Interviewer (Guy Johnson)]

Okay, I understand a little, little. Somebody told me that tomorrow you're going to have an investor day and you're going to. You're going to give some pretty aggressive targets in terms of deliveries. If I assume that that is correct, you are going to deliver those quite ag. Do you think you're going to be through the Pratt Whitney engine issues fairly soon? When, when do these issues, these supply chain issues finally get resolved?

[Guillaume Faury, CEO of Airbus]

Well, let's not think that the Pratt and Witness situation means that we have supply chain issues everywhere. That's not the case. As I told you, we are ramping up. It's the case on all our programs. We have given already targets in terms of rates for the 320, rate 75, for the A350 rate 12, for the 330, rate 5, and for the 220 as well. So we are on the everywhere, but we are consistent. We are in line with our objectives for this year, and we intend to continue to stay in line with our objectives. So delivering to our customers, that's the

[Interviewer (Guy Johnson)]

way the story that everybody's talking about here at Farnborough, and that is, when does the next generation of narrowbody arrive? I spoke to your friend in Seattle a little bit earlier on. He told me that Boeing's probably looking at the back end of next decade. Guillaume, can you get there first? Can you get to the market first with the next generation of aircraft?

[Guillaume Faury, CEO of Airbus]

We want to be going to the market in the right timing when we are ready, when the technologies are ready. We have already said and we confirm that we want to launch the next generation single aisle in 2030 for an entry into service in the second head in second. Second in the second part of the next decade. So that's a bit more than 10 years away, which in our time frame is almost tomorrow. Yes, so. So we are preparing the next generation of single line. It will come with a fuel burn of around 25%, which is contributing to what we were discussing at the beginning

[Interviewer (Guy Johnson)]

is that open fan rotor Technology, we

[Guillaume Faury, CEO of Airbus]

have to decide on a number of technologies. We are not at the point of deciding that will be the next couple of years. And indeed an important choice is whether we maintain the traditional now gear turbofan or if we go for an open auto, which has better fuel efficiency but comes with other type of risk. So we are assessing those risks at the moment.

[Interviewer (Guy Johnson)]

What do you think we see?

[Guillaume Faury, CEO of Airbus]

Okay, we have to be fact based.

[Interviewer (Guy Johnson)]

Okay, let's talk about jet fighters. Europe wants to produce new generation of jet fighters. We have the FCAS program which you were part of and we've got the GCAP program. The FCAS program you're no longer part of when you join the GCAP program. When are you going to make that decision?

[Guillaume Faury, CEO of Airbus]

It's slightly more complex actually still part of the future combat air system that is more than a six generation plane, but indeed the sixth generation plane as it was structured at the beginning is no longer there. So we have to find a way forward to the next six generation fighter. For Europe at Airbus, we want to continue to be part of it. Therefore your question. But again, if class is a broader thing and the French President and the German Chancellor have decided last week to continue to work together, for instance on the, on the network, on the so called combat cloud that is so important for connecting the different things that will be flying in the air and in space. So FCAS is more than a plane, it's also a plane. And we have to find a way forward. Government part of fcas. Of course, we're still part of fcas.

[Interviewer (Guy Johnson)]

So you will, so you will stay there. You won't. I'm. I'm saying your good friend over at Leonardo tomorrow morning, do you think he's talked about the fact that maybe you could join the GCAP program?

[Guillaume Faury, CEO of Airbus]

Again, if GAS is a broader thing than the six generation fighter, we have to find a way forward for the six generation fighter. It's mostly the decision of governments to decide with whom they want to partner. We will serve that project anyway for Germany and Spain, as we are the industrial partner of Germany and Spain for the six generation fighter.

[Interviewer (Guy Johnson)]

What do think about can Europe rearm without the Americans?

[Guillaume Faury, CEO of Airbus]

I don't think so. I think the Americans are allies of Europe. Europe wants to rearm. Europe wants to be more self sufficient. And that's also what the Americans are expecting from Europe in NATO. And when it comes to the industry, we're supporting that effort. So I think Europe is not saying that they will in the future do everything themselves in defense, but they want to be able to do more by themselves. And a company like Airbus is contributing to this effort.

[Interviewer (Guy Johnson)]

You UK has got a new Prime Minister today. What do you think the message should be from this show, from the defense industry should be to that new to Andy Byrne, the UK Prime Minister.

[Guillaume Faury, CEO of Airbus]

We wait and see and we'll be discussing with the Prime Minister when the Prime Minister is appointed.

[Interviewer (Guy Johnson)]

Okay, but do you think the uk, what are the priorities? You think that he should be looking

[Guillaume Faury, CEO of Airbus]

at the priorities for the uk? I think when it comes to defense are similar to the priorities of Europe. Better contribution to NATO, to the security of Europe and the willingness and the ability to work for partnerships, because defence is an industry that works at the right scale and obviously Europe, the eu, needs the UK and vice versa.

[Interviewer (Guy Johnson)]

Do you think we can get the 5% defense spending?

[Guillaume Faury, CEO of Airbus]

Don't ask me. As the governance I know, but you're

[Interviewer (Guy Johnson)]

the guy that's going to have to deliver some of that. Do you think?

[Guillaume Faury, CEO of Airbus]

I think. I think it's really important that there is more money that comes to defense, and that's obviously part of the going to 3.5% or 5%. I think it's important that the money is well spent and well spent in Europe means working together, collaborating. So we're really calling for collaborations that work when it comes to defense.

[Interviewer (Guy Johnson)]

Given a great pleasure as always, thank you very much indeed for your time here at the Farnborough Show. Guillaume. For the CEO of Airbus, health care

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