Airbus Navigates Engine Woes as Boeing Gains Momentum: What’s Next for Aviation?
Airbus, a leading aircraft manufacturer, anticipates delivering 870 commercial aircraft in 2026, a slight adjustment from initial analyst expectations. This comes amidst increasing pressure as Boeing demonstrates signs of recovery after years of challenges. The core issue? Engine shortages, specifically from Pratt & Whitney, a subsidiary of RTX.
The Pratt & Whitney Bottleneck
According to Airbus CEO Guillaume Faury, the Pratt & Whitney engine supply is “the single most important topic we are dealing with.” Delays in engine deliveries are impacting Airbus’s production ramp-up, forcing a revised narrowbody output rate of 70-75 aircraft per month by late 2027, down from a previous target of 75.
This isn’t a new problem. Airbus previously cut its 2025 delivery guidance due to supplier quality issues affecting A320 family aircraft. While Barclays analysts characterize the current disruption as a “temporary execution setback,” the impact is clear: Airbus shares have fallen, currently showing negative gains for 2026.
Boeing’s Resurgence
While Airbus grapples with engine constraints, Boeing is showing renewed strength. Boeing delivered more aircraft than Airbus in 2025 and secured more orders for the first time since 2018. In January 2026 alone, Boeing delivered 46 aircraft and booked 103 net orders, significantly outpacing Airbus’s 19 deliveries and 49 net orders.
This shift is largely attributed to the leadership of CEO Kelly Ortberg, who took the helm in 2024 to steer the company out of crisis. Boeing’s fourth-quarter revenue in 2026 exceeded Wall Street expectations, signaling a positive trajectory.
Boeing shares have outperformed Airbus over the past 12 months.
Financial Performance: Airbus in 2025
Despite the challenges, Airbus reported strong financial results for the fourth quarter of 2025. Adjusted earnings before interest and tax (EBIT) reached 2.98 billion euros, surpassing estimates. Full-year EBIT totaled 7.13 billion euros on revenue of 73.4 billion euros.
Looking ahead, Airbus anticipates an adjusted EBIT of around 7.5 billion euros and free cash flow before customer financing of approximately 4.5 billion euros in 2026, alongside the 870 aircraft delivery target.
The Ultra-Long-Range Market
Airbus is also focusing on specialized aircraft configurations, like the A350-1000ULR, designed for exceptionally long-range commercial flights. These aircraft are poised to enable the world’s longest routes, catering to growing demand for non-stop travel.
What Does This Mean for Passengers?
The dynamic between Airbus and Boeing directly impacts the aviation industry and, passengers. Increased competition typically leads to innovation and potentially lower fares. However, supply chain disruptions, like the current engine shortage, can contribute to flight delays and cancellations.
Pro Tip:
When booking flights, consider airlines that are diversifying their fleets. A mix of aircraft from different manufacturers can provide greater resilience against potential disruptions.
FAQ
Q: What is causing the delays at Airbus?
A: Primarily, shortages of engines supplied by Pratt & Whitney are impacting Airbus’s production schedule.
Q: Is Boeing back on track?
A: Boeing is showing positive signs of recovery, with increased orders and deliveries, and strong financial performance in recent quarters.
Q: What does this mean for air travel costs?
A: While increased competition can lead to lower fares, supply chain issues may temporarily contribute to higher prices or limited availability.
Q: What is the A350-1000ULR?
A: It’s a specially configured Airbus aircraft designed for ultra-long-range commercial flights.
Did you know? Boeing secured more deliveries and net orders in January 2026 than Airbus, a notable shift in the industry landscape.
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