Airbus reported a significant decline in net profit of 46 percent in the first half of the year, amounting to 825 million euros. This decrease was largely attributed to a substantial writedown in its space operations, which resulted in a charge of 989 million euros. Despite this setback, the overall revenue for the first half of the year increased by 4 percent to 28.8 billion euros, driven by a rise in commercial aircraft deliveries to 323 planes.
Supply Chain Issues
The company revealed that the lowered earnings forecast for 2024, reaching 5.5 billion euros, was a result of supply chain challenges that are impeding aircraft production. Airbus reduced its initial estimate from between 6.5 and 7.0 billion euros due to limitations in the supply chain. The firm is currently focused on navigating these hurdles, particularly in terms of specific supply chain challenges and the procurement of key work packages.
Commercial Aircraft Deliveries
Despite delivering 323 aircraft in the first half of the year, an improvement from the previous year, deliveries were impacted during the second quarter due to ongoing supply chain issues. Airbus aims to deliver approximately 770 commercial aircraft in 2024, a slight decrease from its initial forecast of 800 planes. The company pointed out that many suppliers who downsized their operations during the pandemic are encountering difficulties in scaling production back up, which is affecting Airbus’s aircraft assembly capabilities.
Airbus is facing a challenging period marked by a significant decline in net profit, a substantial charge in its space business, and supply chain problems that are hindering aircraft production. The company’s efforts to address these issues are crucial for its future financial performance and operational success.
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