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
Shares in Airbus fell by close to 11% on Tuesday after the company said it was cutting its targets for 2024, including aircraft deliveries and earnings.
Airbus on Monday said it was now expecting its adjusted earnings before interest and taxes to come in at around 5.5 billion euros ($5.9 billion), down from a previous estimate of 6.5 to 7 billion euros affirmed on April 25.
The company said it was now anticipating to deliver approximately 770 commercial aircrafts this year, compared to a previous outlook near 800. Airbus also delayed its target timeline for ramping up the production of its A320 aircraft.
Europe-listed shares in the company were down 10.75% at 9:50 a.m. London time.
Airbus
The guidance cuts are partly linked to supply chain issues in Airbus’ commercial aircraft business, the company said.
“Airbus is facing persistent specific supply chain issues mainly in engines, aerostructures and cabin equipment,” the firm noted.
Airbus said it was also facing additional costs in its space systems division. It had recognized “commercial and technical challenges” in the business and was therefore recording charges of around 0.9 billion euros in the first half of 2024, Airbus said.
“These are mainly related to updated assumptions on schedules, workload, sourcing, risks and costs over the lifetime of certain telecommunications, navigation and observation programmes,” the company said.
Airbus’ half-year results are set to be released on July 30.
Earlier this year, Airbus’ operating profit for the first quarter came in weaker than expected, with CFO Thomas Toepfer at the time telling CNBC that company earnings were “not particularly strong.”
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