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European plane maker posts higher revenue and profit for the first quarter
Airbus posted higher revenue and profit for the first quarter, backed its goal to deliver more planes this year than in 2023 and decided to increase production of its A350 wide-body jets, extending its lead over beleaguered rival Boeing.
The European plane maker confirmed its target to deliver about 800 commercial aircraft to customers this year, more than the 735 planes it dispatched in 2023.
Airbus’s optimism that deliveries will keep growing comes as Boeing grapples with the fallout from an Alaska Airlines emergency landing in January after a door plug ripped away in midair, prompting a temporary grounding and immediate inspections of Boeing 737 MAX jets.
Airbus handed 142 planes to customers in the first quarter, up nearly 12% versus a year ago. Boeing, on the other hand, delivered just 83, a 36% drop from a year ago.
The U.S. company, under pressure from airlines and regulators to ensure safety and quality in its production processes, reported a net loss and declining revenue in the first quarter, showing diverging fortunes with Airbus.
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The European plane maker said that it will book charges of about €900 million in the first half of 2024
Airbus said it won’t be meeting its annual targets for the year, including the number of commercial aircraft it planned to deliver, after its space-systems management team identified further commercial and technical challenges.
The European plane maker on Monday said that it will also book charges of about €900 million ($962.5 million) in the first half of 2024 following an extensive review of its space-systems programs.
Airbus expects to end the year delivering 770 commercial aircraft, down from a prior outlook of 800 commercial aircraft deliveries a couple of months ago.
The company said its A320 ramp-up trajectory has been adjusted to reflect specific supply-chain challenges in a degraded operating environment, and that its target production rate of 75 A320 Family aircraft a month is now set to be reached a year later, in 2027.
Airbus also forecasts adjusted earnings before interest and taxes of about €5.5 billion, below the €6.5 billion to €7 billion expected previously.
Airbus’s free cash flow before customer financing expectations have also been lowered to €3.5 billion from €4 billion, the company said.
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Machinist strike and Pentagon projects sap manufacturer’s cash flow. Boeing lost roughly $4 billion in the most recent quarter, when the jet maker was hit by a debilitating strike, suffered mounting losses in troubled U.S. government projects and incurred costs tied to sweeping job cuts rolled out at the end of the year.
The manufacturing giant warned investors that it generated less revenue and racked up bigger losses than Wall Street anticipated. Thursday’s warning came before Boeing was scheduled to release its full results on Tuesday. Shares fell in after-hours trading.
The $4 billion expected loss includes big write-downs on money-losing projects for the Pentagon and in the company’s commercial jet business. Wall Street had expected Boeing to book a roughly $1 billion quarterly loss for the period.
Boeing said it expects to report revenue of $15.2 billion for the latest quarter, compared with Wall Street’s forecast of $16.6 billion. Its operations had negative cash flow of $3.5 billion in the December quarter, coming in slightly better than investors had feared.
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The airline has cut the target for a second time to 206 million passengers
Ryanair said it expects to fly fewer passengers than hoped in fiscal 2026, cutting its passenger growth target yet again, due to Boeing plane delivery delays.
The Irish budget airline said Monday that although the production of Boeing 737 planes was recovering from the strikes of last year, the U.S. plane maker wasn’t expected to deliver enough aircraft to meet Ryanair’s fiscal 2026 passenger growth goal.
The company cut its target for a second time to 206 million passengers. It had trimmed its passenger growth guidance in early November to 210 million from 215 million and warned at the time that the risk of further delivery delays from Boeing remained high.
The company flew 183.7 million passengers in the year to March 2024. It said it expects to fly almost 200 million passengers in fiscal 2025.
Ryanair said it hoped the delivery of 29 remaining Boeing Gamechangers before March of next year would allow it to recoup its delayed traffic growth in summer 2026. The company had 172 Boeing Gamechangers in its fleet as of the end of December, out of an order of 210.
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