Airbus Struggles for Profitability Despite Increased A220 Production

Airbus has increased production of its A220 aircraft at its facility in Mirabel, Quebec. Yet, the French multinational remains significantly below its target for achieving profitability. According to an Airbus report released on January 12, 2026, the company delivered a total of 93 A220 aircraft in 2025, marking a 24 percent increase from the 75 aircraft delivered in 2024. This translates to a production rate of 7.75 aircraft per month.

Despite this uptick in production, Airbus is falling short of its goal to manufacture 14 aircraft per month by 2026, a benchmark deemed essential for profitability. Disruptions in the supply chain, particularly engine issues with supplier Pratt & Whitney, are hindering production capabilities, as noted in the report. This situation poses a potential risk to the value of the Quebec government’s investment, which holds a 25 percent stake in the A220 program.

The Quebec government had initially backed its $800 million investment, but following a revision disclosed last October, it halved the value of its stake to $400 million. In defense of this decision, the office of Quebec Economy Minister Christine Fréchette argued that such interventions would enable the province to collect an estimated $3.4 billion in tax revenues from 2023 to 2028.

The estimated total loss on Bombardier’s CSeries, now branded as the A220, is approaching $1.7 billion. This figure accounts for the $1.3 billion investment made by former Premier Philippe Couillard’s government in the CSeries project. The subsequent administration, led by François Legault, injected nearly $800 million into Airbus Canada to bolster the A220’s development, though this investment has since depreciated by $400 million.

As Airbus navigates these challenges, the timeline for potential recovery remains uncertain. The company is set to be eligible to buy back the Quebec government’s stake in 2035, but the path to profitability will require overcoming significant operational hurdles and enhancing production efficiency.

This ongoing situation highlights the complexities of the aerospace industry and the intricate relationship between government investment and corporate performance. The implications of these developments will extend beyond the immediate financial metrics, impacting jobs and economic stability in the region.