Airbus shares nosedive on lower delivery forecasts

Airbus shares nosedive on lower delivery forecasts

A logo of Airbus is seen at Airbus headquarters in Blagnac, near Toulouse, France February 14, 2019. — Reuters pic

Thursday, 28 Jul 2022 7:43 PM MYT

PARIS, July 28 — Shares in Airbus nosedived on the stock exchange today after the European plane maker downgraded its forecasts for aircraft deliveries this year.

Airbus shares plunged by more than five per cent on Paris’s blue-chip CAC 40 index, after the group announced the day before that global supply-chain crunches had forced it to lower the number of aircraft it expects to deliver this year to 700 from 720.

Chief executive Guillaume Faury had said late yesterday that Airbus delivered 297 aircraft in the first six months, the same number as in the same period a year earlier.

Group revenues were also stable in the period from January to June, totalling €24.8 billion (RM112 billion), up from €24.6 billion a year earlier, but net profit fell by 15 per cent to €1.9 billion .

The first-half deliveries comprised 25 A220s, 230 A320 family, 13 A330s and 29 A350s, the group said.

“Airbus delivered a solid first-half performance in a complex operating environment, with the geopolitical and economic situation creating further uncertainties for the industry,” Faury said.

“The supply-chain challenges are leading us to adjust the A320 family ramp-up steps in 2022 and 2023, and we now target a monthly rate of 65 in early 2024. Our aircraft delivery target for 2022 has been updated accordingly,” the CEO said.

Analysts said they had been caught off guard by the lower delivery forecast and would be lowering their earnings forecasts for Airbus for the coming years.

Nonetheless, Airbus itself said it was sticking to its target for full-year operating profit of €5.5 billion in 2022. — AFP