Airbus CEO Guillaume Faury has cautioned employees about a rise in geopolitical risks that could affect the company, following significant logistical and financial setbacks caused by trade disputes in the past year. In an internal memo, Faury stressed the importance of adapting to these unsettling developments, emphasizing solidarity and self-reliance within the company.
The warning comes as the aerospace industry faces increasing turbulence due to protectionist trade policies and growing tensions between the United States and China. Faury specifically pointed to the confrontation between the two global superpowers as a significant source of difficulties for Airbus. These tensions have disrupted supply chains and increased operational costs, impacting the company's performance.
Faury's memo, which was circulated last week, did not identify specific geopolitical events but alluded to the disunity between Washington and its allies over issues such as Greenland and the role of NATO. Airbus, as a major European defense supplier, is particularly vulnerable to international strategic shifts.
The trade pressures have already inflicted "significant collateral damage, logistically and financially," according to Faury. In 2025, sweeping tariffs announced by the U.S. President led to Chinese restrictions on rare earth exports. Subsequently, Washington temporarily froze exports of engines and other key components to China, impacting the Chinese C919 jet program, which relies on U.S. parts. Airbus also uses U.S.-made components for aircraft assembled in China, further exposing the company to geopolitical fallout.
Despite these challenges, the aerospace sector secured a partial reprieve from U.S. tariffs. Faury commended Airbus's 160,000 employees for the "good results" achieved in 2025, though he did not provide specific details. The company is set to release its full financial results on February 19. He mentioned that Airbus Defence and Space is now on stronger footing after restructuring and that Airbus Helicopters continues to deliver steady results.
Airbus is taking steps to mitigate the impact of these challenges. The company is focusing on stabilizing its supply chain, ensuring the flow of deliveries, and increasing production of its A320 family aircraft. This involves diversifying suppliers and maintaining flexibility in production locations.
Moreover, Airbus is preparing for the next major product cycle, with the 2030s expected to center around a successor to the A320. Faury emphasized that consistent profit growth in the latter half of the 2020s is crucial to funding this endeavor. He also stressed the importance of learning from past setbacks, including a major software recall and issues with fuselage panels, to improve overall performance.
While supply chains have improved since the COVID-19 pandemic, they remain a source of disruption. Airbus has faced significant difficulties with engines from Pratt & Whitney and CFM, which has also slowed down jet deliveries. To navigate the complex landscape, Faury urged employees to enhance internal capabilities and foster solidarity, aiming for sustained and profitable growth throughout the decade.
