Howmet CEO sees improved jet output, supply chain despite tariff 'whiplash'

Adds comments from RTX CEO at Barclays event

By Allison Lampert and Abhijith Ganapavaram

Feb 19 (Reuters) - Planemakers should make gains on jet output in 2025 as suppliers see improvements despite "tariff whiplash" over changing U.S. announcements on duties, Howmet Aerospace HWM.N CEO John Plant said on Wednesday.

Planemakers Boeing BA.N and Airbus AIR.PA have struggled to keep up with strong demand from airlines on production of new jets, flagging supply chain snags and labor shortages.

"I do have optimism that we’re going to break through narrow body build and wide body build during this year," Plant said at the Barclays Annual Industrial Select Conference.

"We can’t keep talking about supply chain constraints year after year. They have to be resolved, or maybe most of them already are and maybe they are being used as a bit of a fig leaf sometimes, here or there."

Boeing has said it will grow output of its strongest-selling 737 MAX jet back to 38 a month by mid-year after contending with multiple crises that hit manufacturing in 2024.

Europe's Airbus, which remains ahead of its U.S. rival with a reported 766 jet deliveries in 2024, expects to produce 75 single-aisle aircraft a month in 2027.

Plant's remarks follow comments by the head of French engine maker Safran SAF.PA who said earlier this month that he was certain Boeing would hit key production milestones for 737 MAX this year.

Howmet in February took a conservative outlook for 2025 due to industry uncertainty, although the castings giant has forecast better-than-expected first-quarter revenue and profits on strong aircraft demand.

RTX RTX.N CEO Chris Calio said separately at the Barclays event that the aerospace supply chain is continuing to stabilize, pointing to improved supplies of structural castings that are used in making jet engines.

RTX's Pratt & Whitney competes with CFM International to make engines for Airbus A320neo aircraft. Calio said he expects Pratt & Whitney's upgraded engine, the GTF Advantage, to be certified around the middle of the year.

RTX's 2025 guidance does not incorporate any possible impact from tariff announcements by U.S. President Donald Trump, with Calio calling the situation fluid.

Trump has said new U.S. tariffs would hit metals used in planemaking effective March 12.

Plant said Howmet has been reacting to the changing tariff announcements such as plans earlier this month by Trump to put 25% duties on Mexico and Canada only to give both countries a temporary reprieve.

"I've got tariff whiplash," Plant said. "One day I face left, the other day I face right."

He recalled how Howmet was working to put strategies in place to address the 25% tariffs only to see the threat removed a day later.

"That was a waste of time and effort and energy," Plant said, adding that he is not complacent over reacting to the prospect of tariffs.