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MUNICH—MTU Aero Engines CEO Johannes Bussmann expressed confidence that a solution in the ongoing dispute between Airbus and Pratt & Whitney over the number of PW1100G engine deliveries can be reached.
Airbus CEO Guillaume Faury has been critical of Pratt and its partners, saying Airbus is not receiving the number of engines agreed by the parties at the various final assembly lines and therefore cannot deliver the number of aircraft envisaged. Airbus plans to raise output from 793 aircraft in 2025 to 870 in 2026, nonetheless.
Bussmann said the ongoing talks are between Pratt and Airbus; MTU is not directly involved. Pratt is facing strong demand from two competing sides: Airbus, which is trying to ramp-up production as quickly as possible, and airlines, trying to return grounded aircraft back to flying. Faury said Airbus will insist on receiving the contractually agreed number of engines.
According to the MTU CEO, the number of aircraft on ground (AOG) as a result of the powder metal issue affecting a part of the PW1100G-powered A320neo family fleet is now fewer than 400. The Aviation Week Fleet Discovery database lists more than 700 geared turbofan (GTF)-powered aircraft as parked or stored, although not all are out of service because of power metal repairs.
Bussmann said the AOG rate was still “not satisfactory.” MTU itself is incurring €250 million ($295 million) in charges linked to the issue as foreseen in 2026, down from €360 million a year earlier. He stressed that the engine is meeting expectations in terms of fuel burn and noise.
He is confident that a new GTF, powering the next generation single-aisle (NGSA) aircraft envisaged for the end of the 2030s, could contribute enough savings to reach an overall fuel burn reduction of up to 30%. In addition, durability will be an important subject, Bussmann said, cautioning that “we are working at the limits of what is technically feasible.”
MTU grew revenues by 16% year-over-year to reach €8.7 billion in 2025; its operating profit grew by 29% to €1.35 billion. Civil engines contributed most to MTU’s overall revenues (€8.1 billion), with civil MRO at €5.9 billion. MTU reached an operating margin of 8% in the civil MRO business, while new engine component deliveries were significantly more profitable at a 30% operating margin.
The company plans to grow revenues in 2026 up to €9.7 billion and is forecasting an operating profit in the range of €1.35-1.45 billion. Investors reacted with disappointment to the relatively cautious guidance; MTU’s stock price temporarily dropped by more than 6%.
In the medium term, MTU plans to grow revenues to €13.5 billion or more.
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