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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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Boeing was given 90 days to present regulators with an action plan to address quality-control issues at its 737 factory. Here’s a look at the layers of Boeing’s quality process and the issues each faces.
The Federal Aviation Administration said it wouldn’t lift the production cap it placed on Boeing following the Alaska Airlines accident for at least several months.
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The cuts in all amount to around 5% of its defense and space division workforce and will predominately take place in Germany, France and the U.K.
Airbus said it would push ahead with plans to cut around 2,000 positions at its embattled defense and space division, targeting mostly management support roles as it seeks to rein in costs.
The European aircraft maker on Thursday said it would cut 2,043 jobs, around 5% of the division’s workforce, fewer than the up to 2,500 positions Airbus had initially sought to eliminate two months ago.
Airbus’s defense and space division, responsible for making satellites, spacecraft, jet fighters and drones, has been navigating a challenging few months lately.
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Long-delayed upgrade had been one of Trump’s pet projects
President-elect Donald Trump didn’t get to fly on a new Air Force One during his first term. He likely won’t get to fly on a new presidential plane in his second term, either.
The long-delayed project has fallen so far behind schedule that Boeing has told the Air Force that it expects to deliver the new jets after Trump leaves the White House, according to people familiar with the matter. That means the airplanes wouldn’t be ready until 2029 or later.
Frustrated with the delays, Trump raised the project with Boeing CEO Kelly Ortberg when the two men spoke by phone in November. As he prepares to return to the White House, Trump has repeatedly asked advisers about the status of Boeing’s work.
Boeing used to be a great American company, he has told aides, according to people briefed on the discussions. What happened to them? Trump
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Boeing Outlines Steps Taken to Address Manufacturing Issues
Boeing is conducting more surprise inspections at its factories as part of a plan to prevent manufacturing faults like the one that led to a jet panel blowout on an Alaska Airlines flight a year ago. The jet maker today outlined more than a dozen steps it's taken in recent months to tackle a manufacturing quality crisis that had forced the company to slow production and placed it under regulatory scrutiny. Some of those steps have been previously reported.
- Boeing Adds More Surprise Quality Checks in Its Factories
- Boeing Resumes Production of Airplanes, Including 737
- Boeing Commits $1 Billion to Speed Up 787 Dreamliner Production
- Airbus Sticks to Plane-Delivery Goal, Ramps Up A350 Production European plane maker posts higher revenue and profit for the first quarter