Airbus CEO says no jet order cancellations despite fuel crisis

Airbus CEO Faury Says No Jet Order Cancellations Despite Fuel Crisis

Airbus CEO Guillaume Faury said on Tuesday that he has seen no signs of airlines seeking to cancel aircraft orders, even as soaring fuel costs linked to the conflict with Iran have battered carrier finances across the globe.usnews

Speaking at an industry conference in Berlin, Faury said airlines have “been through hell” in recent years but continue to hold onto their order books, pointing to durable demand for new, fuel-efficient jets. The remarks came a day after the conclusion of the International Air Transport Association’s 82nd annual general meeting in Rio de Janeiro, where the industry confronted what amounts to its sharpest profit squeeze since the pandemic.reuters

Airlines Absorb a Historic Fuel Shock

IATA slashed its 2026 global airline profit forecast nearly in half at the Rio gathering, projecting combined net earnings of $23 billion — down from an earlier estimate of roughly $41 billion and well below the $45 billion recorded in 2025. The net profit margin for the industry is expected to fall to 2%, compared with 4.2% a year earlier.aerotime

The cause is unmistakable: fuel expenditures are projected to balloon to approximately $350 billion this year from around $252 billion in 2025, with jet fuel prices averaging about $152 per barrel — nearly 70% above last year’s levels. IATA director general Willie Walsh also pointed to an additional $11 billion in costs stemming from supply-chain disruptions, including persistent engine shortages from manufacturers like Pratt & Whitney and CFM International.reuters

Record Backlog Underpins Confidence

Despite the financial pressure, Airbus enters the downturn with a formidable cushion. As of the end of March 2026, the company reported a backlog of more than 9,000 aircraft, representing roughly a decade of production at current delivery rates. In the first quarter alone, Airbus booked 408 gross commercial orders, though deliveries slipped to 114 units from 136 a year earlier amid the ongoing engine supply crunch.forecastinternational

Faury had struck a similar tone in late April, telling reporters there had been “no cancellations or postponements” due to the Iran conflict while acknowledging that the environment remained “complex, dynamic and fast-changing”. Airlines, for their part, are responding to the fuel shock by cutting capacity and raising fares rather than trimming future fleet plans. LATAM Airlines CEO Roberto Alvo warned at the Rio summit that further capacity reductions could follow if elevated prices persist.aviationweek

The resilience of order books underscores a structural reality: with global fleets aging and delivery timelines stretching years into the future, airlines appear reluctant to surrender hard-won production slots — even as their margins shrink.