Key facts
- Airbus projects adjusted operating profit between €12 billion and €13 billion for 2029.
- The company reported a higher-than-expected second-quarter profit, driven by defence and helicopter divisions.
- Airbus reaffirmed its full-year financial targets.
- Production of the A330neo jet is planned to increase to five per month by 2029.
- The interim production goal of 65 A320neo-family jets per month by end-2024 was withdrawn.
Airbus has set a target of achieving between €12 billion and €13 billion in adjusted earnings before interest and taxes by 2029. The European aerospace giant announced this long-term financial goal while also reporting a higher-than-expected second-quarter profit, driven by strong performance in its defence and helicopter divisions. The company reaffirmed its full-year financial forecasts, indicating confidence in its current operational trajectory.
In addition to the 2029 profit target, Airbus plans to increase the production rate for its A330neo jet to five aircraft per month by 2029, responding to rising demand for wide-body aircraft. The company also confirmed its 2023 financial targets, including 720 jet deliveries and an adjusted operating profit of €6.0 billion, along with a free cash flow target of €3.0 billion. For 2024, Airbus aims to deliver approximately 770 jets.
However, Airbus has withdrawn its previously stated interim production goal of 65 A320neo-family jets per month by the end of 2024. While the company maintains its ultimate goal of producing 75 such jets per month by 2026, the removal of the interim target has surprised some suppliers. CEO Guillaume Faury stated that the 65-a-month target was a milestone for post-COVID recovery that is no longer relevant. The company also faces challenges from engine delays, particularly from Pratt & Whitney, which has ordered inspections on 1,200 A320neo engines. Faury indicated that while 2023 output is not expected to be significantly affected, future production could face indirect consequences.
Airbus reported a 34% increase in second-quarter adjusted earnings before interest and tax to €1.845 billion on revenues of €15.9 billion. The company's third-quarter results also exceeded analyst expectations, with adjusted operating profit rising 39% to €1.407 billion on revenues of €15.689 billion. The board plans to propose a third term for CEO Guillaume Faury, whose current mandate expires in 2025, and has named Lars Wagner as the successor to Christian Scherer as head of planemaking.