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Reading: Airbus Spending Cuts Target 10% Of Non-Industrial Costs
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PhotoNews Pakistan > Business > Airbus Spending Cuts Target 10% Of Non-Industrial Costs
Business

Airbus Spending Cuts Target 10% Of Non-Industrial Costs

Web Desk
By Web Desk Published May 20, 2026 2 Min Read
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An Airbus facility is shown with the company’s logo and a welcome sign outside the building. Image Credit: Dream Job
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Airbus SE ordered a 10% cut in most non-industrial spending as supply-chain problems and global uncertainty continue to pressure its jetliner business, three industry sources told Reuters.

The cost-containment move covers the commercial aircraft division and headquarters-related activities but does not affect production, according to the sources. Airbus declined to comment.

The fresh reduction has been in effect for several weeks and builds on Airbus’ LEAD cost-saving project launched in 2024. Reuters reported that the measure focuses partly on reducing the use of external contractors.

Exclusive: Airbus targets 10% cost cuts over global uncertainty and supply snags https://t.co/0OZv8oILRp https://t.co/0OZv8oILRp

— Reuters (@Reuters) May 19, 2026

Airbus faces pressure from higher energy costs, trade tensions and disrupted supply chains. A Reuters review found companies listed in the United States, Europe and Asia face at least $25 billion in costs from rising energy prices and fractured supply chains.

Chief Executive Officer Guillaume Faury told analysts last month that the Iran war had caused no immediate disruption, but Airbus remained concerned about higher oil prices and related product costs.

The company is also dealing with A320-family fuselage panel problems, Pratt & Whitney engine availability concerns, and pressure on A350 parts due to Spirit AeroSystems integration.

Airbus deliveries fell 16% in the first quarter, before narrowing to 6% by April. The company still targets about 870 aircraft deliveries this year, while Cirium data showed around 27 deliveries so far this month.

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