Airbus reported a significant 46 percent decrease in net profit, falling to 825 million euros in the first half of the year. This decrease was largely attributed to a substantial writedown in its space operations, which resulted in a charge of 989 million euros. Despite the decline in net profit, the company’s overall revenue saw a 4 percent increase to 28.8 billion euros.
In the first half of the year, Airbus saw a rise in commercial aircraft deliveries, with a total of 323 planes delivered. However, the company experienced a drop in deliveries during the second quarter due to supply chain issues. Airbus is focused on increasing deliveries and preparing for a ramp-up in production, but challenges in the supply chain are hindering its ability to meet demand.
As a result of the supply chain issues, Airbus adjusted its forecast for operating earnings in 2024 to 5.5 billion euros, down from the previous guidance of 6.5 to 7.0 billion euros. The company aims to deliver around 770 commercial aircraft in 2024, lower than the initial forecast of 800. The challenges in the supply chain, combined with the downsizing of suppliers during the pandemic, are impacting Airbus’s production capabilities.
Airbus’ chief executive, Guillaume Faury, acknowledged the financial challenges faced by the company, particularly in the space business. Faury emphasized that the issues were being addressed, and the company is focused on overcoming the supply chain challenges to increase aircraft production. Despite the setbacks, Airbus remains dedicated to fulfilling its delivery commitments to customers.
Airbus and its rival Boeing both rely on delivering aircraft to generate revenue. Supply chain issues are affecting both companies, with order books remaining robust. While Airbus has seen improvements in aircraft deliveries compared to the same period last year, the challenges in the supply chain are impacting its ability to meet increasing demand.
Airbus’ half-year financial performance reflects the continued impact of supply chain challenges and writedowns in its space operations. The company is working to address these issues and improve its production capabilities to meet delivery commitments and increase its earnings in the future.
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