Airbus offers an update on its 2024 planning
Airbus Updates 2024 Guidance and Reveals Production Targets
In a recent update, Airbus, the European aerospace giant (stock symbol AIR), has announced its revised 2024 guidance, assuming no additional disruptions to the world economy, air traffic, the supply chain, internal operations, and its ability to deliver products and services.
The company is aiming to deliver around 770 commercial aircraft in 2024, a significant figure that reflects Airbus's commitment to maintaining strong production momentum. The company has already delivered 373 commercial aircraft through July 2025, putting it on track for its annual target of 820 units.
However, Airbus faces a significant challenge in its A320 Family aircraft deliveries. The primary supply chain issue causing delays in 2025 is engine shortages, specifically delays from engine suppliers CFM and Pratt & Whitney. This bottleneck has caused over 60 A320-family jets to be grounded awaiting engines, reducing deliveries from 159 units in Q2 2024 to 113 units in Q2 2025.
Despite this setback, Airbus is demonstrating operational discipline in navigating these supply disruptions while preparing for higher future output. The company aims to increase the A320 Family production to 75 aircraft per month by 2027, a move that shows Airbus's scalability strategy to absorb current supply shocks without hindering its adjusted earnings growth.
In addition to the A320 Family, Airbus also targets producing 12 A350s per month by 2028. This ambition underscores Airbus's commitment to expanding its production capabilities and meeting the demands of its customers.
On the financial front, Airbus has set its EBIT Adjusted target for 2024 at around € 5.5 billion. It's worth noting that this guidance does not include any Mergers and Acquisitions (M&A). The company's Free Cash Flow before Customer Financing target for 2024 is around € 3.5 billion.
Investors and analysts are invited to an analyst call on 24 June 2024 at 19h45 CEST Paris time. The half-year results for the year will be disclosed on 30 July 2024. A recording of the analyst call will be made available in due course.
The charges of approximately € 0.9bn reported on certain telecommunications, navigation, and observation space programmes are due to updated assumptions on schedules, workload, sourcing, risks, and costs over the lifetime of these space programmes.
The analyst call presentation will also be made available on the Airbus website, and it can be followed via the Airbus website at https://www.our website/en/investors. This market update provides insight into Airbus's space activities and commercial aircraft business.
In the light of Airbus's announcement, the company aims to maintain its strong presence in the aerospace industry by producing 12 A350s per month by 2028, demonstrating its commitment to expanding production capabilities. Airbus also targets an EBIT Adjusted figure of € 5.5 billion and a Free Cash Flow before Customer Financing of € 3.5 billion in 2024, reflecting its financial prowess within the broader business and finance sector.
