- Charges of around € 0.9bn reported on certain telecommunications, navigation and observation space programmes
- A320 ramp-up trajectory adjusted to reflect specific supply chain challenges in a degraded operating environment; around 770 commercial aircraft deliveries now expected in 2024; target production rate of 75 A320 Family aircraft a month maintained and now expected to be reached in 2027
- 2024 guidance updated
Amsterdam, 24 June 2024 - Airbus SE (stock exchange symbol: AIR) 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 programmes, identifying further commercial and technical challenges. On that basis, the Company has decided to record charges of around € 0.9bn 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 programmes.
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 updated 2024 guidance, 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.
The Company's 2024 guidance is before M&A.
On that basis, in 2024, the Company now targets to achieve:
- 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 30 July 2024.
