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Airbus Shares Drop 12% after Cutting Aircraft Delivery Targets


Wed 26 Jun 2024 | 01:28 AM
Taarek Refaat

Airbus shares fell about 12% on Tuesday after the company said it lowered its targets for 2024, including aircraft deliveries and profits.

Airbus said on Monday that it now expects its adjusted earnings before interest and taxes to record about €5.5 billion euros ($5.9 billion), down from a previous estimate of €6.5 billion to €7 billion confirmed on April 25.

The company added that it now expects to deliver approximately 770 commercial aircraft this year, compared to a previous forecast of near 800 aircraft. Airbus also postponed the target schedule for increasing production of its A320 aircraft.

Airbus shares listed in Europe fell by 11.96% at 13:30 GMT.

The company said the target cuts were partly linked to supply chain issues in Airbus' commercial aircraft business.

As a result of lower delivery expectations, which would mean annual growth of 5% instead of 9%, Airbus lowered its key financial targets for 2024.

Airbus now expects core operating income of around €5.5 billion, instead of a range of €6.5 billion to €7.0 billion, and free cash flows of €3.5 billion instead of €4.0 billion.

“We are facing headwinds now; we have to bear it,” Airbus CEO Guillaume Faury told analysts.