Key facts
- Airbus targets adjusted operating profit between €12 billion and €13 billion by 2029.
- A €5 billion share buyback program has been launched.
- The interim production goal of 65 A320neo-family jets per month by end-2024 was withdrawn.
- Production of the A330neo jet is planned to increase to five per month by 2029.
Airbus has set a long-term target of achieving between €12 billion and €13 billion in adjusted operating profit by 2029, signaling confidence in its ability to increase earnings as it ramps up aircraft production. The European aerospace giant also announced a €5 billion share buyback program. CEO Guillaume Faury stated that the company has cleared many challenges and is in a good position to provide an outlook, with engine supplier Pratt & Whitney indicating that maintenance disruption is easing.
Airbus reported a higher-than-expected second-quarter profit, driven by strong performance in its defence and helicopter divisions, and reaffirmed its full-year financial targets. The company plans to increase the production rate for its A330neo jet to five aircraft per month by 2029. For 2023, Airbus aims for 720 jet deliveries, an adjusted operating profit of €6.0 billion, and a free cash flow target of €3.0 billion. For 2024, the company targets approximately 770 commercial jet deliveries.
However, Airbus has withdrawn its previously stated interim production goal of 65 A320neo-family jets per month by the end of 2024, though it maintains its ultimate goal of producing 75 such jets per month by 2026. Faury explained the 65-a-month target was a milestone for post-COVID recovery that is no longer relevant. The company faces challenges from engine delays, particularly from Pratt & Whitney, which has ordered inspections on 1,200 A320neo engines, potentially impacting future production beyond 2023.
Airbus reported a 34% increase in second-quarter adjusted earnings before interest and tax to €1.845 billion on revenues of €15.9 billion. Third-quarter results also exceeded analyst expectations, with adjusted operating profit rising 39% to €1.407 billion on revenues of €15.689 billion.