Aerospace giant Airbus SA issued a revised 2024 outlook, cautioning investors to expect charges of “about €0.9 billion” (est. $965 million) in its first-half earnings statement due next month, as well as fewer aircraft deliveries than originally predicted.
The Airbus commercial aircraft business is falling short of expectations due to “persistent, specific supply-chain issues, mainly in engines, aerostructures, and cabin equipment,” it said. Accordingly, the OEM now advises investors it will deliver a total of 770 commercial aircraft during 2024, down from 800 originally forecast.
Reportedly, Airbus has maximized its ability to fulfill current production targets by drawing down spare parts and systems, and that program suppliers are falling behind their delivery schedules. In comments to analysts, CEO Guillaume Faury stated: "We are facing headwinds right now; we have to bite the bullet."
One apparent source of the problem is Spirit AeroSystems, the airframe builder that supplies Airbus as well as Boeing and is directly impacted by the rival manufacturer’s slowed 737 MAX program.
Airbus also explained that it is continuing efforts to increase its monthly production rate for its top-selling A320neo series jets to 75 units per month by 2027, a year later than earlier announced.
The first-half charges to earnings that Airbus announced are attributed to its Space Systems commercial satellite business, where it described “commercial and technical challenges” to its revenues.
“These are mainly related to updated assumptions on schedules, workload, sourcing, risks, and costs over the lifetime of certain telecommunications, navigation, and observation programs,” according to an Airbus statement.
