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Airbus softens output goal amid Pratt & Whitney engine delays

'Airbus' lowered its main jet production goal?on Thursday citing "significant shortages of engines" from one of its main suppliers, RTX unit Pratt & Whitney. During the same time, it reported a 17% increase in core fourth-quarter profit.

The largest planemaker in the world now targets an output rate for narrowbody jets of 70 to 75 per month by the end next year. This will stabilize at 75?per month after 2027. It predicted that the monthly rate would increase to?75 by 2027 from 60 currently.

Airbus and engine maker Pratt & Whitney have been at odds over delays for several months. Both companies say they still haven't reached an agreement about?volumes? for 2026 or 2027. These agreements are usually made 18 months in advance.

Airbus stated in a press release that Pratt & Whitney’s refusal to commit to the amount of engines ordered by Airbus negatively impacts this year's guidance as well as the ramp-up trajectory.

Pratt and Whitney did not respond immediately to a comment request.

Airbus has taken this step after it was reported earlier in the month that there were concerns about Pratt & Whitney's supply, which raised questions as to whether Airbus could meet its production targets.

Airbus also announced a fourth quarter adjusted operating profit of 2.98 billion euro, an increase of 17%. Revenues grew 5% to 25,98 billion euro. Analysts expected a profit of 2.87 billion euros on revenues of 26.51 billion euro.

Airbus?predicted that 870 jets would be delivered in 2026. This is up from 793 deliveries last year. The adjusted operating profit for the same period will be around 7.5 billion euro. (Reporting and editing by Muralikumar Aantharaman, Sonali Paul and Tim Hepher)

(source: Reuters)