ATR bets on 2026 production ramp-up amid strong turboprop demand

The company logged 60 gross orders and 50 net orders last year, taking its backlog to more than 160 aircraft, while revenues held steady at about $1.2 billion

French-Italian turboprop aircraft manufacturer ATR said it is preparing to raise production in 2026 after reporting strong order inflows in 2025, even as deliveries fell short of targets due to supply-chain constraints, the company said in a press release on Wednesday.

Stable revenues, services growth

ATR reported $1.2 billion in total revenue for 2025, with customer support and services contributing a record $538 million. The company said services growth helped support financial performance despite lower aircraft deliveries. The company logged 60 gross orders and 50 net orders last year, taking its backlog to more than 160 aircraft. However, it delivered 32 aircraft in 2025, below its initial target.

 

 

“We do not measure the success of a transition year like 2025 on one number,” said chief executive Nathalie Tarnaud Laude, adding, “We are determined to raise our delivery rate; and that is why we have worked on concrete steps to address the issues that limited our output.”

 

She added that the company had “strengthened every part of our organisation and laid the groundwork for a safe, sustainable and credible increase in production” as it prepares for a ramp-up from 2026 onwards.

 

Fleet developments during the year included new operations in North America, such as public charter services in the United States using ATR 42-600 aircraft and the certification and delivery of the first ATR-600 in Canada, the statement said.

Deliveries lag demand amid supply pressures

ATR said the gap between demand and output reflected a difficult industrial environment marked by persistent supply-chain shortages. The company continued investing through the year to stabilise production and improve assembly-line flow as it works to increase deliveries.

 

“Tangible measures include improvements in Final Assembly Line flow, reopening of stations, a steady decline in part shortages — now down to one-third of early-2025 levels — alongside close collaboration with our suppliers,” said Marion Smeyers, senior vice-president for operations and procurement.

 

The company is targeting a roughly 20 per cent increase in deliveries in 2026 compared with 2025 levels, she added.

Orders and leasing activity remain strong

In the statement, ATR said demand for turboprop aircraft remained firm across regions. Orders in 2025 came from nine customers in nine countries, including double-digit commitments from Air Algérie and UNI Air for ATR 72-600 aircraft.

 

The broader market also showed activity, with 19 new operators joining the ATR fleet during the year and more than 90 transactions recorded in the second-hand market. The leasing environment remained active, with aircraft placed with airlines from lessors’ order books.

 

“Demand for our aircraft is strong, regional operators want more capacity,” said Alexis Vidal, senior vice-president for commercial.

Longer-term technology plans

The manufacturer also pointed to longer-term technology initiatives, including participation in two European Clean Aviation research programmes aimed at developing hybrid-electric propulsion and other low-emission technologies. The projects are expected to support a hybrid-electric ATR 72-600 testbed by the end of the decade.

 

“ATR is relevant today, and we will remain relevant tomorrow,” Tarnaud Laude said, adding that the groundwork laid in 2025 would help the company meet expected demand as production increases in the coming years.