Europe-based global major aerospace group Airbus has released updated guidance for its expected performance for the rest of this year. Its previous guidance for the year had been issued in late April.
The new guidance downscaled the group’s expected performance for this year, both in financial and delivery terms. This was because of issues with certain of the group’s space programmes, and challenges in the supply chain for its commercial airline business.
“In the first half of 2024, the Space Systems management team conducted an extensive technical review of all programmes, identifying further commercial and technical challenges,” stated the group, in its release. As a result, the group has recorded charges of some €0.9-billion in its accounts for the first half of this year. “These are mainly related to updated assumptions on schedules, workload, sourcing, risks and costs over the lifetime of certain telecommunications, navigation and observation programmes.”
Regarding its commercial aircraft business, the group reported that it was facing “persistent” issues in the supply chain. These were mainly concerned with aerostructures, cabin equipment and engines.
In terms of aircraft deliveries, Airbus now expected to hand some 770 airliners over to customers during this year. (The previous guidance had been for almost 800 airliner deliveries this year.) The group was continuing its programme to ramp up production of its A320-family single-aisle airliners to 75 a month, but achievement of that rate has been pushed back a year, to 2027.
On the financial side, Airbus now forecast that its 2024 adjusted earnings before interest and taxes (Ebit) would be about €5.5-billion. (Its previous guidance had been adjusted Ebit of €6.5-billion to €7-billion.) The group now expected to achieve a free cash flow of some €3.5-billion this year. (The previous expectation had been for a figure of around €4-billion.)
The group would release its half-year results on July 30.