This report details recent developments concerning MTU Aero Engines and Airbus amidst ongoing disputes over PW1100G engine deliveries. MTU CEO Johannes Bussmann expressed confidence that a resolution is achievable, despite Airbus Ceo Guillaume Faury's criticisms regarding delivery shortfalls affecting the Airbus A320neo family fleet, which is suffering from powder metal issues and resulting in over 700 aircraft being parked or stored.
The disagreement has implications for Airbus's production plans, which aim to increase aircraft output in 2026. Bussmann clarified that MTU is not directly involved but acknowledged the significant charges incurred due to the technical issues, with the AOG rate still viewed as unsatisfactory. Nevertheless, he highlighted optimism about future engine developments, notably the next-generation geared turbofan engine, which promises up to 30% fuel savings and better durability for future aircraft.
Looking ahead, MTU reported revenues of €8.7 billion in 2025, with a strong profit margin, and projects growth to €9.7 billion in 2026. The company's civil engine segment remains highly profitable, with new engine components operating at a 30% margin. Despite cautious investor sentiment, MTU aims to grow revenues significantly in the medium term, targeting €13.5 billion or higher.
