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Airbus shares fall as company lowers 2024 guidance on targets and deliveries
A Lufthansa Airbus A340-313 aircraft taxis at Los Angeles International Airport before departing for Frankfurt on May 5, 2024 in Los Angeles, California.
Kevin Carter | Getty Images News | Getty Images
Actions in Airbus fell nearly 11% on Tuesday after the company said it was cutting your targets to 2024, including aircraft deliveries and revenues.
Airbus on Monday he said now expected its adjusted earnings before interest and taxes to be around 5.5 billion euros ($5.9 billion), below previous estimate of 6.5 to 7 billion euros stated on April 25th.
The company said it now expects to deliver approximately 770 commercial aircraft this year, compared with a previous forecast of around 800. Airbus also delayed the anticipated timeline for increasing production of its A320 aircraft.
The company’s European-listed shares fell 10.85% at 11:37 am London time.
The guidance cuts are partly linked to supply chain issues in Airbus’ commercial aircraft business, the company said.
“Airbus is experiencing persistent and specific supply chain issues, particularly in engines, aerostructures and cabin equipment,” the company noted.
Airbus said it also faces additional costs in its space systems division. It recognized “commercial and technical challenges” in the business and therefore recorded charges of around 0.9 billion euros in the first half of 2024, Airbus said.
“These primarily relate to updated assumptions about schedules, workload, supply, risks and lifetime costs of certain telecommunications, navigation and observation programs,” the company said.
Airbus’ half-yearly results will be released on July 30.
Earlier this year, Airbus’ first-quarter operating profit was weaker than expectedwith CFO Thomas Toepfer at the time telling CNBC that the company’s profits were “not particularly strong”.