Airbus delivers updated forecast for 2024 operations
Airbus, the European aerospace giant, has announced an update to its 2024 guidance, aiming to deliver around 770 commercial aircraft for the year, a slight increase from the initial target of 820. The company also reaffirmed its targets for Adjusted EBIT and free cash flow before customer financing.
The revised 2024 guidance includes a target of approximately €7 billion in Adjusted EBIT and nearly €4.5 billion in free cash flow before customer financing. However, the company expects its projected free cash flow to be around €3.5 billion, due to ongoing supply chain challenges that have affected its performance in the first half of 2025.
In the first half of 2025, Airbus delivered 306 commercial aircraft, a decrease from 323 in the same period the previous year. The company's EBIT Adjusted for the half-year was €2.2 billion, while free cash flow before customer financing was negative at €-1.6 billion due to inventory buildup and engine supply delays.
Despite these challenges, Airbus is pushing forward with its production ramp-up plans. The company aims to reach a production rate of 75 aircraft per month for the A320 family by 2027, 5 aircraft per month for the A330 by 2029, 12 aircraft per month for the A350 in 2028, and 14 aircraft per month for the A220 by 2026. However, these plans are being pressured by persistent supply chain issues, particularly involving Spirit AeroSystems.
The updated 2024 guidance excludes Mergers and Acquisitions (M&A). Airbus is also facing commercial and technical challenges in its space activities, leading to an extensive technical review by the Space Systems management team in the first half of 2024.
An analyst call will be held on 24 June 2024 at 19h45 CEST Paris time, and the presentation will be made available on the Airbus website. The half-year results will be disclosed on 30 July 2024, and a recording of the analyst call will be made available in due course. The company's investors can follow the call via the Airbus website at https://www.our website/en/investors.
Airbus, with the stock exchange symbol AIR, is updating its 2024 guidance based on the assumption of no additional disruptions to the world economy, air traffic, the supply chain, the company's internal operations, and its ability to deliver products and services. The company has also reported charges of approximately €0.9bn for certain telecommunications, navigation, and observation space programmes.
In conclusion, Airbus's 2024 guidance stands firm amidst operational challenges, with a focus on delivering around 770 commercial aircraft, about €7 billion Adjusted EBIT, and nearly €4.5 billion free cash flow before customer financing. The execution in the second half of 2024 will be critical to achieving these targets.
- Airbus's 2024 space activities are undergoing a review due to commercial and technical challenges, which may require significant resources from the company's finance and science departments.
- Despite facing supply chain issues in multiple industries, such as aircraft manufacturing, space exploration, and telecommunications, Airbus continues to invest in research and development, aligning with the broader goals of the science and finance sectors in innovation and growth.
