Airbus Keeps Guidance, Cash Burns

Airbus is riding a wave of record orders and a huge delivery backlog, but as the company gears up for an aggressive Q4 sprint—targeting 323 aircraft deliveries in just three months—cash is draining fast. Revenues are up, but a negative €1.27 billion in free cash flow and slipping net cash signal that ramping production is expensive and risky. Add in recent quality hiccups and a heavy reliance on suppliers, and execution is under the microscope: hitting the 870 delivery target means everything from labor to components has to click without a hitch.

But here’s the catch: a brewing trade fight threatens to upend the whole plan. The U.S. Trade Representative is warning that a massive European Investment Bank loan to Airbus could breach a delicate truce, risking a snapback to 30% tariffs on transatlantic aircraft sales. If new tariffs hit, U.S. airlines waiting on Airbus jets could see costs surge or deliveries slip, forcing Airbus to rethink its production priorities and pricing just as competitors like Boeing are watching for an opening.

Based on reporting from FlightGlobal, Fortune, and direct statements from Airbus CEO Guillaume Faury and CFO Thomas Toepfer.

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