Tariffs biggest challenge for Airbus, says CEO

Core Insights - Airbus has lowered its A220 production target from 14 to 12 jets per month, which is seen as the break-even rate for the aircraft [1][4] - The company reported a nearly 40% increase in core operating profit for Q3, reaching €1.94 billion [1] - The CEO emphasized the challenges in ramping up production and integrating work packages from Spirit AeroSystems, which is expected to close by the end of the year [2][3] Production and Delivery Challenges - Airbus aims to deliver around 820 planes this year, having delivered 507 so far, indicating a need to deliver 300 planes in the last quarter [6][7] - The company is experiencing a backlog, particularly with fully assembled planes that lack engines, although the number of such planes has decreased to 32 [7] - The production ramp-up for the A220 is considered a significant challenge, with the target of 12 jets per month viewed as a success if achieved [3] Geopolitical and Tariff Impacts - The company is navigating complex geopolitical dynamics, particularly between the US and China, which affects its operations [8][10] - Recent agreements have alleviated some tariff pressures between the US and EU, which is beneficial for Airbus [9][11] - The company is monitoring the impact of China's restrictions on rare earth exports but currently does not foresee significant disruptions [13][15] Joint Venture Announcement - Airbus announced a joint satellite venture with Talis and Leonardo, targeting annual revenues of approximately €6.5 billion [18] - The new joint venture will be based in Toulouse and employ 25,000 people, with Airbus holding the largest stake [18][19] - This initiative is seen as a strategic move to consolidate the fragmented defense and space industry in Europe, with operational goals set for 2027 [19]