ATR’s 2026 Takeoff: Navigating Supply Chain Hurdles and a Resurgent Turboprop Market
French-Italian aircraft manufacturer ATR is gearing up for increased production in 2026, buoyed by strong order inflows despite ongoing supply chain challenges that impacted 2025 deliveries. The company reported €1.2 billion in revenue for 2025, with customer support and services reaching a record €538 million.
Demand Outpaces Delivery: A Common Industry Challenge
ATR delivered 32 aircraft in 2025, falling short of initial targets. This shortfall isn’t unique to ATR; the broader aerospace industry continues to grapple with significant supply chain disruptions. A recent report highlighted that supply chain issues could cost airlines over $11 billion in 2025. These challenges stem from geopolitical instability, material shortages, and labor availability, forcing airlines to extend the lifespan of older aircraft.
Despite the delivery lag, ATR secured 60 gross orders and 50 net orders in 2025, bringing its backlog to over 160 aircraft. Notable orders included commitments from Air Algérie and UNI Air for ATR 72-600 aircraft.
Reactivating Production: A 20% Boost on the Horizon
To address the demand, ATR is reactivating a second final assembly line at its Toulouse facility, previously operational until 2018. This expansion is expected to increase deliveries by approximately 20% in 2026, aiming for an annual output of 60 aircraft. ATR’s SVP Procurement and Operations, Marion Smeyers, emphasized improvements in final assembly line flow and a decline in part shortages – now reduced to one-third of early-2025 levels – as key factors in this ramp-up.
Beyond Production: Investing in Sustainable Technologies
ATR isn’t solely focused on increasing output. The manufacturer is actively investing in long-term technology initiatives, participating in European Clean Aviation research programs focused on hybrid-electric propulsion and low-emission technologies. These projects aim to develop a hybrid-electric ATR 72-600 testbed by the end of the decade, signaling a commitment to sustainable aviation.
The Turboprop Renaissance: Why Regional Operators are Taking Notice
Demand for ATR’s turboprop aircraft remains strong across various regions. ATR’s SVP Commercial, Alexis Vidal, noted that regional operators are seeking increased capacity. The market also saw 19 new operators joining the ATR fleet and over 90 transactions in the second-hand market, indicating a healthy and active ecosystem. This resurgence in turboprop demand is driven by their fuel efficiency and suitability for regional routes.
Supply Chain Strategies: Lessons from ATR
ATR’s approach to mitigating supply chain issues offers valuable lessons for the broader industry. Key strategies include strengthening organizational structures, improving assembly line flow, and fostering close collaboration with suppliers. These proactive measures are crucial for stabilizing production and meeting growing demand.
Frequently Asked Questions
Q: What are the biggest challenges facing ATR right now?
A: The primary challenge is navigating ongoing supply chain constraints, particularly regarding landing gears and engines, which impacted deliveries in 2025.
Q: What is ATR doing to address supply chain issues?
A: ATR is improving assembly line flow, reopening stations, reducing part shortages, and collaborating closely with its suppliers.
Q: What are ATR’s plans for the future?
A: ATR plans to increase deliveries by 20% in 2026 and is investing in sustainable technologies like hybrid-electric propulsion.
Q: How strong is the demand for ATR aircraft?
A: Demand is strong, with 60 gross orders and 50 net orders in 2025, and a backlog exceeding 160 aircraft.
Did you know? ATR surpassed the 50-order mark in new aircraft orders for the second consecutive year in 2025.
Pro Tip: For airlines considering fleet upgrades, turboprops offer a compelling balance of fuel efficiency and operational flexibility, particularly for regional routes.
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