Shares of Airbus tumbled nearly 7% after the company forecast 870 commercial aircraft deliveries in 2026 — a figure that fell short of Wall Street’s expectations of more than 900. While fourth-quarter earnings beat estimates, the market focused squarely on production guidance, sending ripples through the aerospace supply chain.

The impact was felt most directly by engine manufacturers, particularly RTX, whose Pratt & Whitney geared turbofan (GTF) engines power a large share of Airbus A320 aircraft. Meanwhile, GE Aerospace traded higher, signaling that investors see differing levels of risk within the engine ecosystem.

Guidance, Not Earnings, Drives the Reaction

Airbus reported fourth-quarter earnings per share of €3.27, comfortably above expectations of €2.64. Operationally, the quarter appeared solid. However, management’s delivery outlook overshadowed those results. While 870 jets in 2026 represents growth from just under 800 in 2025, it signals a slower ramp than the market had anticipated.

Central to the slowdown are engine supply bottlenecks. Airbus’ A320 family relies on two engine options: Pratt & Whitney’s GTF engines from RTX and LEAP engines from CFM International, a joint venture between GE Aerospace and Safran. Airbus management acknowledged that supply chain tensions remain, particularly regarding GTF engine deliveries.

Analysts noted that Airbus has not secured full agreement on the volume of GTF engines it will receive this year. As a result, the company adopted what it described as a “prudent view” in its production guidance, delaying its plan to ramp A320 output to 75 aircraft per month until late 2027.

Why RTX Is Under Pressure

RTX’s Pratt & Whitney division has faced ongoing challenges balancing new engine shipments with maintenance demands in its installed base. The GTF program has been under scrutiny due to durability issues that required increased inspections and grounding of certain aircraft.

Although RTX stock ultimately closed slightly higher on a broader strong day for defense contractors, it spent much of the session under pressure. Investors appear concerned that constrained GTF output could limit Airbus’ production growth, directly affecting near-term revenue visibility.

Supply-chain uncertainty is particularly sensitive in aerospace, where cash flows are heavily tied to delivery schedules. Delays at the engine level cascade upward, affecting airframers, suppliers, and ultimately airline capacity planning.

Why GE Aerospace Is Holding Up

By contrast, GE Aerospace showed relative strength. Its exposure through the LEAP engine program — co-produced with Safran — is viewed as more stable in the current context. Additionally, GE Aerospace benefits from diversified revenue streams in commercial aftermarket services and defense programs, cushioning potential volatility tied to Airbus production.

For investors in both U.S. and global markets, the divergence highlights a broader theme: not all aerospace suppliers carry equal risk as production ramps normalize post-pandemic.

Looking ahead, the key variable remains engine supply resolution. If RTX can accelerate GTF output and maintenance issues ease, Airbus’ production ramp could regain momentum. However, until supply visibility improves, aerospace stocks may trade with heightened sensitivity to guidance revisions rather than headline earnings beats.