Airbus Hits Out at Pratt & Whitney Over Engine Shortages

Core Viewpoint - Airbus is reducing its aircraft delivery expectations due to significant shortages of Pratt & Whitney engines, leading to a public rebuke of the supplier [1][4]. Group 1: Production and Delivery Impact - Airbus shares fell by as much as 8% following the announcement of engine issues that forced a slowdown in A320 production, impacting the company's ability to capitalize on post-pandemic demand for new aircraft [2]. - The company now forecasts approximately 870 commercial aircraft deliveries for the year, an increase from 793 in 2025 but below the 907 deliveries analysts had anticipated for 2026 [5]. - Airbus expects to produce between 70 and 75 A320 aircraft monthly by the end of next year, down from the previous target of 75 [6]. Group 2: Supplier Issues - Airbus has faced challenges sourcing various components, including engines, seats, and toilets, complicating the assembly and delivery of aircraft [3]. - The company has accused Pratt & Whitney of failing to meet contractual commitments, attributing the engine shortages to the supplier's decision to prioritize existing aircraft over new deliveries [4][7]. - The engine issues stem from persistent durability problems and quality issues with some components, leading Airbus to activate a dispute clause in its contract with Pratt [7].