Outlook 2026: ATR narrows its focus as the turboprop market evolves

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By Tom Batchelor

Jan. 19, 2026, © Leeham News: Having announced it was abandoning near-term development plans for a Short Take-Off and Landing (STOL) variant 12 months ago, ATR begins 2026 confident about its position within the turboprop market and with a deeper focus on hybrid technology. 

As the only player in this corner of the regional aircraft segment following the withdrawal of De Havilland Aircraft and the Q400 (now the Dash 8-400) from production, ATR has pinned its hopes on next-generation propulsion while also working with Pratt & Whitney Canada to improve the thermal efficiency of the latest-generation PW127XT engine, which powers both the ATR 42-600 and 72-600 aircraft.

The PW127XT is already delivering significant benefits, including up to 20% lower maintenance costs, extended time on wing, and at least 3% improved fuel efficiency compared to previous models.