Quiver Quantitative - Airbus (EADSY) reaffirmed its commitment to delivering 720 commercial aircraft this year, despite facing persistent supply-chain challenges that have affected the aviation industry globally. After delivering 559 aircraft by the end of October, the European aerospace corporation now aims to dispatch an additional 161 planes in the remaining two months to meet its annual target—a goal that was deferred last year due to similar supply constraints. The company's resolve reflects strong market demand and an ongoing recovery, especially in the wide-body segment, as stated by CEO Guillaume Faury. Airbus anticipates that supply chain difficulties will persist as the company escalates its production to meet the rising demand.
In a push to meet the burgeoning need for international air travel, Airbus has outlined ambitious production targets for its fleet. The A320 narrow-body aircraft production is set to reach 75 units per month by 2026, maintaining the previously announced rate. Moreover, Airbus plans to increase the production rate of the A350 wide-body model to 10 planes per month by 2026, up from the earlier aim of nine. This planned uptick in manufacturing comes after the company had initially reduced production rates for its wide-body planes at the onset of the COVID-19 pandemic, which saw international travel plummet due to stringent travel restrictions.
Airbus's financial performance in the third quarter showed resilience, with a 12% year-over-year increase in revenue, reaching €14.90 billion. Net profit experienced a substantial boost, rising by 21% to €806 million, while adjusted earnings before interest and taxes—a key indicator of the company's profitability—also saw a 21% climb to €1.01 billion. Although these figures narrowly missed analysts' expectations, Airbus remains optimistic about its financial health, projecting a steady course for the rest of the year with expected adjusted earnings of about €6 billion and free cash flow forecasted to hit approximately €3 billion.
Despite the headwinds posed by the supply chain disruptions, Airbus's steadfast focus on delivery targets and increased production capacities signals confidence in the aviation sector's recovery and growth. The company's strategic adjustments and performance metrics are closely monitored by industry analysts and investors, as they gauge the resilience and adaptability of major aerospace corporations in the current economic landscape.
This article was originally published on Quiver Quantitative