Airbus CEO Warns Staff to Prepare for Rising Geopolitical Risks Amid Trade Tensions

Airbus CEO Guillaume Faury has warned employees that the European aerospace giant must be prepared to adapt to growing geopolitical uncertainty after suffering significant logistical and financial impacts from U.S. protectionism and escalating U.S.-China trade tensions. In an internal letter seen by Reuters and circulated last week, Faury described the start of 2026 as a period marked by an unprecedented number of crises and unsettling global developments, urging staff to move forward with solidarity and self-reliance.

Faury said the industrial environment facing Airbus has become increasingly difficult, particularly due to the confrontation between the United States and China. Although Airbus declined to comment on internal communications, the memo was shared amid visible strains between Washington and its allies, including disagreements over Greenland and NATO’s future role. As a major European defence supplier, Airbus is especially exposed to shifts in global security and trade dynamics.

According to Faury, multiple trade pressures have already caused significant collateral damage for the company, both logistically and financially. These challenges followed sweeping tariffs announced by U.S. President Donald Trump last April, which led China to impose restrictions on rare earth exports. The United States also temporarily froze exports of engines and key aerospace components to China, affecting the C919 jet program and Airbus aircraft assembled in China that rely on U.S.-made parts. While aerospace has since received a partial reprieve from U.S. tariffs, the impact continues to be felt.

Despite these headwinds, Faury praised Airbus’ 160,000 employees for delivering good overall results in 2025, though he did not provide details ahead of the company’s earnings release on February 19. He highlighted that Airbus Defence and Space is now on stronger footing following deep restructuring, while Airbus Helicopters has shown consistent performance.

Faury stressed the importance of learning from Airbus’ largest-ever recall in November, linked to a software upgrade, and from later delivery cuts caused by flawed fuselage panels. While post-COVID supply chains have improved, engine issues, particularly with Pratt & Whitney and CFM, remain a major challenge.

Looking ahead, Faury emphasized profitability and cost discipline through the rest of the decade to prepare for the next major aircraft development cycle. Airbus plans to develop an A320 successor for entry into service in the latter part of the 2030s, setting the stage for renewed competition with Boeing. He concluded that achieving profitable growth in the second half of the 2020s is essential to ensure Airbus enters this crucial period in strong competitive shape.