Airbus Faces Persistent Supply Chain Issues; Reduces FY Commercial Aircraft Deliveries To 770 From 800; To Record €0.9B Charges In H1 2024; Targets Adjusted EBIT Of €5.5B; Delays A320 Ramp-Up To 75 Units/Month By One Year
Portfolio Pulse from Benzinga Newsdesk
Airbus is facing ongoing supply chain issues, leading to a reduction in its full-year commercial aircraft deliveries to 770 from 800. The company will record €0.9 billion in charges in the first half of 2024 and has delayed the ramp-up of A320 production to 75 units per month by one year. Despite these challenges, Airbus targets an adjusted EBIT of €5.5 billion.

June 24, 2024 | 5:07 pm
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NEGATIVE IMPACT
Airbus has reduced its full-year commercial aircraft deliveries to 770 from 800 due to persistent supply chain issues. The company will record €0.9 billion in charges in H1 2024 and has delayed the A320 ramp-up to 75 units per month by one year. Despite these challenges, Airbus targets an adjusted EBIT of €5.5 billion.
The reduction in aircraft deliveries and the recording of significant charges are likely to negatively impact Airbus's stock in the short term. The delay in the A320 ramp-up further adds to the negative sentiment. However, the target of €5.5 billion in adjusted EBIT provides some positive outlook.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Boeing may experience indirect effects from Airbus's supply chain issues and reduced aircraft deliveries. This could potentially benefit Boeing if customers seek alternatives to Airbus's delayed deliveries.
Airbus's supply chain issues and reduced deliveries may lead customers to consider Boeing as an alternative, potentially increasing demand for Boeing's aircraft. This could have a positive short-term impact on Boeing's stock.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50