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Home » ATR targets growth with new assembly line though supply chain constraints linger
AeroTime

ATR targets growth with new assembly line though supply chain constraints linger

FlyMarshall NewsroomBy FlyMarshall NewsroomFebruary 18, 2026No Comments5 Mins Read
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ATR reported €1.2 billion in revenue for 2025, right as the turboprop aircraft maker gears up to ramp up production in 2026. 

At a press conference held at the company’s premises in Toulouse, France, on February 18, 2026, ATR’s Chief Executive Officer (CEO), Nathalie Tarnaud Laude expressed her satisfaction about the firm’s performance in the past year, even if deliveries totaled 32 aircraft, a bit lower than the 35 it delivered the preceding year. 

The French executive blamed supply chain constraints, particularly in areas such as landing gears and engines, for this limited output.  

Nevertheless, she highlighted that demand remains strong. In 2025, ATR registered net orders for 50 aircraft (60 new orders and 10 cancellations, the latter due to an undisclosed customer undergoing internal reorganization). These include the largest single orders received by ATR since 2017, from Uni Air of Taiwan and Algerian flag carrier Air Algérie, for 19 and 16 aircraft, respectively. 2025 was also the second year in a row that ATR surpassed the 50-order mark in new orders (it sold 51 aircraft in 2024). 

ATR is, in fact, so confident in the robustness of demand that it is reactivating a second-final assembly line at its industrial site in Blagnac, Toulouse. This additional line, which had been running until 2018, will be active again by May 2026 and it will allow the company to increase its deliveries by 20% in 2026 and reach 60 per year, eventually. 

Miquel Ros / AeroTime

Also present at the press briefing was Marion Smeyers, ATR’s SVP Procurement and Operations, who explained how fixing the supply chain issues had been a top priority for ATR throughout all of 2025. The aircraft manufacturer had worked closely with Tier 1 suppliers to optimize its manufacturing operations and has also been supporting some Tier 2 and Tier 3 suppliers which had found themselves in a delicate financial situation. 

Smeyers shared that ATR had the goal of reducing its production times by 40%, defined as the amount of time that passes from the moment sub-assemblies arrive at the Toulouse plant and the delivery of the aircraft. The firm has so far achieved a reduction of 20%. “We are half of the way there!”, she stated. 

Growth markets

When it comes to ATR’s commercial outlook, the firm’s Commercial Director, Alexis Vidal, highlighted the interesting opportunity that the North American market represents. In the next decade, he explained, some 300 regional jets will need to be replaced. According to him, there isn’t any other platform in the market as efficient as ATR’s turboprops for the type of mission that CRJs currently perform in the US. 

He went on to explain how ATR had acquired lots of anonymized geolocated data which made it possible to better understand mobility patterns throughout the US. “We are not just making planes, we are in the mobility business.” he stated. 

Vidal went on to explain how the abandonment of many regional routes in the US (from around 1,400 to 800 city pairs in the last few years) is, in part, a consequence of aircraft upgauging by airlines. The business case for ATR is that by bringing to the market an aircraft able to operate these routes economically, there will be an opportunity for some operators to restart them. 

In this regard, premium operator JSX acts as a sort of showcase for turboprop operations in a market, the US, which has traditionally shunned this type of aircraft in favor of jets.  

Asked about shifting public perceptions about turboprops in the US, Tarnaud Laude said this is a step-by-step process, with direct experience being the best tool to change perceptions about the aircraft. She shared an anecdote from JSX’s inaugural flight between Santa Monica (SMO), California, and Las Vegas (LAS), in which several attending journalists expressed the positive impression they had had after trying the new service. 

ATR also underlined the fact that 70% of its new orders are meant to replace earlier versions of the same aircraft. According to the executives at the press briefing, these repeat orders show how the company’s products are competitive enough to even replace mid-life aircraft. 

India is another market that ATR is looking at very closely, with demand for efficient regional aircraft expected to reach 200 aircraft over the coming two decades. “For me there is no existing competition for the Indian regional market. We want to be successful in India.” stated Vidal. 

He also added that 90 ATR aircraft had changed hands in the secondary market worldwide. This data point, he said, is proof of the strength of the ATR operator ecosystem. 

Working on clean propulsion

Looking ahead, ATR also confirmed plans to continue investing in clean flight technology. The manufacturer is a leading partner in two programs supported by the European Clean Aviation Joint Undertaking.  

These are, specifically, the HERACLES program (Hybrid-Electric Regional Aircraft Concept for Low EmissionS), which aims to define an ultra-efficient regional aircraft concept capable of integrating high-performance batteries with a thermal engine capable of running on 100% Sustainable Aviation Fuel, and the DEMETRA program, which involves the fly-testing of a hybrid-electric ATR72-600 test bed. 

The validation of these technologies will be key for the future of the low-emissions EVO aircraft, which is expected to fly by end of 2029 and a target entry into service date of 2035. ATR expects to be in a position to take a final decision on the future of this project by 2029. 

“Clean aviation project is the main project for ATR, it is a very important step for building the future of the company.” said Tarnaud Laude when commenting on this project.


ATR aircraft FAL


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