In a long trade war, there will be "only losers" in aerospace, especially in the U.S., with the Airbus chief warning that he calls for tax-free transactions to the industry.
Guillaume Faury, CEO of European aircraft manufacturer, said the U.S. industry is trying to "put a case" to bring back the 1979 agreement until the recent trade disruption allowed tax-free transactions on aircraft and parts.
“We think it makes sense,” Ferry said, adding that it seems “the aerospace industry has only losers, especially in the United States.”
His comments posted in the first quarter had better earnings and revenue than expected.
The company, the world's largest aircraft manufacturer, also confirmed its financial targets and reiterated plans to offer 820 commercial aircraft this year, but said its guidance does not include any impact of tariffs, as it is too early.
Airbus said delivery this year will also be loaded, "reflecting the specific supply chain challenges we face."
Donald Trump's trade war has created uncertainty in an industry that has largely no trade barriers, except for imposing levies over an 18-month period, part of a dispute over subsidies for Boeing and Airbus.
Trump suspended some of the toughest measures announced for 90 days after a series of tariffs imposed on goods imported from his trading partners in early April. However, imports to the United States still impose a 10% tariff, and the president ignited a trade war with Beijing by raising the tax on most Chinese goods to 145%.
Forrey said Airbus is in talks with American Airlines customers about how to mitigate the impact of 10% of duties, but stressed that this would not be subject to tariffs “when it comes to aircraft from American customers outside the United States.”
He added: "It is their responsibility to do this. They are not very happy to see this."
Several airline executives, including Ed Bastian of Delta Air Lines, have warned in recent weeks that they would postpone delivery from Airbus or Boeing, rather than paying tariffs. Delta plans to obtain 10 wide-body jets from Airbus’ European factory this year, according to Aviation Consultancy Cirium.
Aengus Kelly, CEO of AERCAP, the world's largest aircraft leasing company, responded to Faury's comments in an earlier interview with the Financial Times. Kelly warned: "If this tariff situation is to be continued and Europeans will be forced to impose tariffs on Boeing aircraft...it will be more challenging for Boeing to sell to Europe and China".
Airbus finalized a deal on Monday to take over some of the facilities at Spirit Aerosystems, and he said the supplier’s difficulties are continuing to put pressure on upgrades to its A220 and A350 jets.
However, the company said it still plans to produce 12 A350s per month in 2028 and at a monthly A220 production rate of 2026. Its best-selling A320 family continues to move forward at 75 aircraft per month in 2027.
In the first quarter, Airbus reported adjusted earnings increased by 8%, with pre-tax rates rising to €624 million while revenues rose by 6% to €13.54 billion.