Airbus CEO Says Uncertain Outlook For Spirit AeroSystems Industrial Commitments Contributed To Decision To Cut Airbus Output Targets; Declines Comment On Timing Of Impending Agreement To Acquire Spirit AeroSystems Assets Related To A350 And A220; Says Supply Situation For Engines For A320 Family From Both Suppliers Has Deteriorated, Airbus Would Have Had To Start Building Jets Without Engines By End-Month Without Adjusting Guidance; Engine Supply Situation Has Significantly Degraded Over The Last Months
Portfolio Pulse from Benzinga Newsdesk
Airbus CEO announced that uncertainties regarding Spirit AeroSystems' industrial commitments have led to a decision to cut Airbus output targets. The CEO also mentioned a deteriorating supply situation for engines for the A320 family, which has worsened over the last few months.
June 24, 2024 | 5:35 pm
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NEGATIVE IMPACT
Airbus has decided to cut its output targets due to uncertainties with Spirit AeroSystems' industrial commitments and a deteriorating engine supply situation for the A320 family.
The decision to cut output targets directly impacts Airbus' production and revenue forecasts. The deteriorating engine supply situation further exacerbates production challenges, likely leading to negative short-term stock price movement.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Uncertainties in Spirit AeroSystems' industrial commitments have contributed to Airbus' decision to cut output targets. Additionally, there is an impending agreement for Airbus to acquire Spirit AeroSystems assets related to A350 and A220.
The uncertainties in Spirit AeroSystems' commitments have led to a significant decision by Airbus to cut output targets, which negatively impacts Spirit AeroSystems' business outlook. The impending asset acquisition adds further uncertainty.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90