Supply Chain News

FlightGlobal

Higher ATR and 787 production helps Leonardo’s aerostructures unit narrow losses

Leonardo’s aerostructures business reduced its losses in the first half of 2026 as manufacturing rates increased on the ATR and Boeing 787 programs. Ongoing restructuring also supported the improvement, bringing the unit closer to break-even while highlighting the importance of sustained production growth to its recovery.

AeroTime

Russia increases funding for MC-21 production and initial IL-114-300 support

Russia is increasing investment to sustain production of the MC-21 narrowbody while allocating additional support for the first three IL-114-300 regional turboprops. The funding underscores Moscow’s effort to advance domestic commercial aircraft programs and support their early operational rollout amid constraints on aerospace supply chains.

Reuters

Melrose expects £25m-£30m cost hit after GKN Aerospace plant incident and pauses buyback

Melrose Industries expects an additional £25 million-£30 million ($33.6 million-$40.3 million) in costs during the second half of 2026 following a May incident at GKN Aerospace’s Garden Grove, California, facility. The aerospace group also paused its share buyback as it assesses the impact.

FlightGlobal

High activity

Defense aerospace partnerships span India, New Zealand and the UK as domestic capability takes priority

BAE Systems is expanding its industrial presence in India as New Delhi pursues defense self-reliance, while New Zealand begins acquiring a long-range surveillance UAV. In the UK, TEKEVER and iCOMAT are scaling collaboration around AR5 production, underscoring the growing emphasis on sovereign supply chains and indigenous aerospace technologies.

FlightGlobal

Republic raises 2026 guidance after Mesa merger

FlightGlobal

Textron Aviation details workforce overhaul as it targets higher jet production rates

Textron Aviation’s CEO outlined a plan to ramp jet production by tackling longstanding factory issues, alongside a significant workforce refresh. The company said half its employees joined in the past five years, underscoring the scale of its post-pandemic staffing and capability reset.

Aviation Business News

Avolon Q2 2026: net income up 45% to $209M as lease revenue and cashflow rise amid delivery constraints

Dublin-based lessor Avolon reported Q2 2026 net income of $209 million, up 45% year-on-year, supported by higher lease revenue and rising operating cash flow. The results point to a continued pattern of lessors benefiting as OEMs face persistent aircraft delivery delays.

CNBC

High activity

Rolls-Royce touts Trent durability gains as BAE Systems lifts defense-driven guidance; both signal momentum into 2026

Rolls-Royce says it has “effectively eliminated” aircraft-on-ground events over the first half by rolling out Trent 1000 and 7000 engine durability improvements, alongside continued transformation progress. Separately, BAE Systems raised full-year targets as defense spending booms, with CEO Charles Woodburn warning against adding GCAP partners if it slows the program.