Airbus urged to prepare for new crises. Why are its risks higher than Boeing's?

Airbus warns of a sharp rise in geopolitical risks at the start of 2026 and urges employees to prepare for an "unprecedented number of crises" period. Company executives point to a deteriorating external environment, trade conflicts and the need to be prepared for changing conditions. Analysts say the risks for Airbus are higher than for its U.S. rival Boeing, but remain positive on the European aircraft maker's shares.

Airbus is preparing its employees for a challenging year amid heightened geopolitical tensions between the United States and other countries, Reuters writes, citing an internal company memo.

"The beginning of 2026 is marked by an unprecedented number of crises and worrying geopolitical changes. We must act in solidarity and self-reliance," CEO Guillaume Faury wrote in a corporate newsletter.

He noted in the letter that the industrial environment in which the company operates is characterized by many complexities, exacerbated by the standoff between the United States and China. These geopolitical factors led to significant logistical and financial losses last year, he said, and Airbus must therefore be ready to adapt to the new environment at any time.

Forey also said it was "crucial" for Airbus to learn lessons from the largest recall in the company's history in November 2025 related to a software update.

When asked by Blomberg, the company said it does not comment on internal correspondence.

Airbus shares, trading in Paris, were down nearly 2% on Jan. 26. Over the past 12 months, they have added more than 20%. Airbus will publish its financial results on February 19.

The unusually gloomy tone of Airbus management underscores the growing anxiety over the increasingly tough course of US President Donald Trump toward longtime allies, including Canada and European countries, notes Bloomberg. This includes Washington's demand to hand over control of Greenland to the U.S., accompanied by threats to impose new duties against states that oppose it.

Airbus continues to face delays in delivering engines for the A320 family, said Christian Scherer, the recently resigned head of Airbus' commercial division. He singled out US aircraft engine supplier Pratt & Whitney (the latter declined to comment).

Forey said that by the end of the current decade Airbus will focus on improving its financial performance and building up a reserve of resources ahead of a new stage of competition with Boeing, Reuters writes. He said the 2030s will be devoted to developing a successor to the A320, and profit growth in the second half of the 2020s is key to the successful implementation of this strategy.

Overall, political instability is overshadowing a favorable period for aircraft manufacturers and airlines, despite demand reaching record levels, reports said. United Airlines warned last week that the standoff between world powers could disrupt the carrier's global operations.

Airbus faces higher risks than its U.S. rival Boeing amid renewed transatlantic trade tensions over Greenland, Bloomberg writes. This situation jeopardizes the agreement to maintain zero duties in the aerospace industry, according to Bloomberg Intelligence analysts George Ferguson and Melissa Balzano.

"We believe Airbus has more to lose given its broader customer base in the US. However, the company has more options due to its final assembly line in Alabama. Engines remain a particularly challenging category given the tightly intertwined supply chains," they said.

RBC on January 21 recommended its clients to buy Airbus shares, reducing the target price on them from €240 to €235. This target implies a 13.5% rise in the stock relative to the closing price on January 23.

At the same time, Grupo Santander initiated research coverage on the aircraft maker's stock with a buy recommendation (Outperform rating) and set a target price of €250.5. This valuation implies a 21% upside for the stock.

Out of 22 analysts covering Airbus securities, 16 are positive and advise to buy them. Five recommend to keep them in the portfolio and only one - to sell.

This article was AI-translated and verified by a human editor