Paris, May 2 - In a compelling call to action, Airbus, the European aerospace giant, has urged a return to a zero-tariff trade agreement for the aerospace industry, emphasizing the detrimental effects of escalating trade tensions. This appeal, made public on April 30, 2025, coincides with the company’s announcement of stronger-than-expected first-quarter financial results, driven largely by robust performance in its defense sector. The plea for tariff-free trade reflects growing concerns within the global aerospace industry about the ripple effects of U.S.-imposed tariffs and the potential for European countermeasures, which could disrupt supply chains and increase costs across the board.
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Airbus CEO Guillaume Faury highlighted the importance of reinstating a 1979 treaty involving 33 nations that historically exempted aircraft and parts from customs duties. This agreement fostered a highly integrated transatlantic aerospace industry, with significant cross-border collaboration between the U.S. and Europe. Faury noted that the industry has thrived on this framework, with the U.S. and European aerospace sectors serving as each other’s largest customers, despite the fierce rivalry between Airbus and Boeing. However, recent U.S. tariffs, including a 20% levy on EU goods and 10% on British imports, threaten to unravel this cooperative ecosystem. Faury warned that a prolonged tariff war would result in “only losers,” as higher costs could cascade to airlines, suppliers, and ultimately consumers through elevated ticket prices.
The company’s first-quarter performance provides a backdrop of resilience amid these uncertainties. Airbus reported an 8% increase in adjusted operating profit, reaching 624 million euros ($707 million), surpassing analysts’ expectations of 602 million euros. Revenues grew by 6% to 13.54 billion euros, bolstered by an 11% rise in defense business revenue, which offset challenges in commercial jet deliveries. Despite these gains, Airbus faced significant supply chain hurdles, notably delays from CFM International, a joint venture between GE Aerospace and France’s Safran. These delays left 17 aircraft undelivered in the first quarter, with Faury indicating that the issue would worsen before improving by mid-2025. Additionally, challenges with Spirit AeroSystems, recently acquired in part by Airbus, have hampered production ramp-ups for the A320 and A350 jet models.
Airbus reaffirmed its 2025 guidance, projecting 820 aircraft deliveries, a 7% increase from 2024’s 766, though it cautioned that deliveries would be backloaded toward the year’s end due to ongoing supply constraints. The company’s forecasts exclude the potential impact of tariffs, which Faury described as too uncertain to quantify. He ruled out absorbing tariff costs for U.S. airlines taking delivery of jets from Europe, noting that carriers like Delta Air Lines have signaled they would defer deliveries rather than pay additional fees. Meanwhile, Airbus expressed optimism about its A400M military airlifter, citing constructive talks with European nations to sustain production beyond the current order pipeline, set to expire in 2028. The aerospace industry stands at a critical juncture, with Airbus’s call for a return to tariff-free trade echoing sentiments from U.S. counterparts like Boeing and GE Aerospace. As trade tensions loom, the company’s ability to navigate supply chain disruptions while capitalizing on defense sector growth will be pivotal. For now, Airbus remains focused on mitigating risks and advocating for a trade environment that preserves the industry’s global interconnectedness.