Airbus provides 2024 guidance update
Reduced commercial aircraft deliveries in 2024 and A320 production rate 75 shifted to 2027 reflects persistent specific supply chain challenges.
Source | Getty Images
Airbus SE (Amsterdam, Netherlands) is providing a market update to report on new developments related to its space activities and commercial aircraft business, the impact of which is leading the company to update its 2024 guidance.
In the first half of 2024, the Space Systems management team conducted an extensive technical review of all programs, identifying further commercial and technical challenges. On that basis, the company has decided to record charges of around €0.9 billion in the H1 2024 accounts. These are mainly related to updated assumptions on schedules, workload, sourcing, risks and costs over the lifetime of certain telecommunications, navigation and observation programs.
In commercial aircraft, Airbus is facing persistent specific supply chain issues mainly in engines, aerostructures and cabin equipment. The company now intends to deliver around 770 commercial aircraft in 2024 and continues to ramp up towards a rate of 75 A320 Family aircraft per month, which is now expected in 2027.
Accordingly, Airbus is updating its 2024 guidance. As the basis for its update, the company assumes 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. Airbus’ 2024 guidance is before M&A.
In 2024, targets to achieve are now:
- Around 770 commercial aircraft deliveries;
- EBIT Adjusted of around € 5.5 billion;
- Free cash flow before customer financing of around € 3.5 billion.
The company’s half-year results will be disclosed on July 30, 2024.
For related content, read “Airbus reports record commercial aircraft orders in 2023.”
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