Airbus’ stock market experienced a significant decline on Tuesday, marking its largest drop in four years. This drop came after the company publicly acknowledged that it had been too optimistic in its forecasts for the year. The company has now reduced its 2024 profit expectations, resulting in a significant decrease.
Initially, Airbus had set a goal of 800 commercial aircraft deliveries for the year, but this has now been reduced to 770 due to supply chain challenges affecting engines, aerostructures, and cabin equipment. The company has also postponed its manufacturing goals for certain aircraft models. Additionally, Airbus has faced difficulties in its Space Systems division, resulting in increased financial charges.
As a result of these challenges, Airbus has revised its operating profit forecast for 2024 to €5.5 billion, down from the previously announced range. Cash flow forecasts have also been adjusted downwards. Analysts have noted that the issues in the supply chain have impacted Airbus’ ability to meet customer demand, particularly for new aircraft deliveries. The company has attributed these challenges to certain engine manufacturers, among others.
Airbus’ shares in the market have experienced a significant decline as a result of these developments. Analysts have expressed concerns about the company’s ability to fulfill customer orders in a timely manner due to supply chain disruptions and production requirements obstacles. While demand for their products remains strong, Airbus faces obstacles in meeting production requirements due to supply chain disruptions and difficulties with certain engine manufacturers.
Overall, Airbus’ recent challenges in the supply chain and financial performance have raised concerns among investors and analysts alike about the company’s ability to regain stability and confidence in the market as it strives to meet customer orders and maintain profitability amidst ongoing production challenges
