Airbus May Prioritize Non-U.S. Deliveries Amidst Potential Tariffs

Airbus CEO Guillaume Faury indicated on Thursday that the company might prioritize deliveries to customers outside the United States if tariffs disrupt its imports into the country. Faury spoke during an interview discussing Airbus's full-year results with CNBC's Charlotte Reed.

“We have a large demand from the rest of the world, so [if] we face very significant difficulties to deliver to the U.S., we can also adapt by bringing forward deliveries to other customers which are very eager to get planes,” Faury explained. This statement highlights Airbus's flexibility in navigating potential trade barriers.

Navigating Tariff Uncertainties

Faury acknowledged the looming threat of tariffs imposed by U.S. President Donald Trump, stating, "Those tariffs are looming, and we don't know what they will be, [and], if and when we would have tariffs come in, what they would impact." He emphasized that Airbus is prepared to adapt to these uncertainties. The company is aware of the potential impact of tariffs on both sides of the North Atlantic ecosystem.

Strengthening Domestic Presence

Despite the challenges posed by potential tariffs, Faury stressed that Airbus has taken steps to reduce its reliance on U.S. imports. These efforts include increasing purchases from American suppliers, selling a significant number of aircraft and helicopters in the U.S., and establishing part of its production locally.

One notable example is Airbus's large output site in Mobile, Alabama, which houses two final assembly lines for the company's A220 and A320 family jets. An additional U.S. line is currently under construction to build A320 and A321s for the domestic market.

Addressing Supply Chain Constraints

While navigating trade uncertainties, Airbus continues to grapple with supply chain issues that are limiting its production capacity and hindering progress on its order backlog of over 8,000 jets. Faury acknowledged these challenges during his interview with CNBC.

Financial Performance and Future Outlook

Airbus reported a 6% rise in annual revenue for 2024 but an 8% fall in adjusted operating profit to 5.35 billion euros ($5.59 billion). The company's defense and space unit experienced a loss of 656 million euros for the full year.

Despite these challenges, Airbus remains optimistic about its future prospects. The company has set a target of delivering around 820 aircraft in 2025, emphasizing its commitment to meeting customer demand.

Space Sector Struggles

Faury highlighted the space sector as an area where Airbus is facing significant difficulties, citing competition from companies like SpaceX and past investments in technologies that have proven challenging. He acknowledged that the company underestimated the risks associated with these ventures.

Airbus is currently restructuring its space unit and working to address existing issues. The company aims to improve its performance in this sector despite the ongoing challenges.

Outperforming Boeing

Airbus's annual results underscore its resilience compared to its crisis-hit U.S. rival, Boeing, which reported an annual loss of $11.83 billion for 2024.

Overall, Airbus is navigating a complex environment marked by trade uncertainties, supply chain constraints, and challenges in the space sector. However, the company remains focused on delivering value to its customers and achieving its long-term goals.