Airbus Shares Plummet 11% as Company Slashes 2024 Targets

Airbus witnessed a substantial drop of almost 11% in its shares on Tuesday following its announcement of revised targets for 2024, which include reductions in aircraft deliveries and earnings.

The company revised its adjusted earnings before interest and taxes forecast to approximately 5.5 billion euros ($5.9 billion), down from the previously stated range of 6.5 to 7 billion euros indicated on April 25.

Moreover, Airbus now expects to deliver around 770 commercial aircraft this year, a decrease from the prior estimate of nearly 800, and has postponed its A320 aircraft production ramp-up.

The European-listed shares of Airbus plunged by 10.75% as of 9:50 AM (London time).

The company attributed the downward revision in guidance to supply chain challenges within its commercial aircraft segment, particularly related to engines, aerostructures, and cabin equipment.

Airbus also disclosed additional expenses in its space systems division, citing difficulties in meeting schedules, workload, sourcing, risks, and costs for certain telecommunications, navigation, and observation programs. As a result, Airbus is accounting for charges amounting to around 0.9 billion euros in the first half of 2024.

Airbus is scheduled to release its half-year results on July 30. The company had faced operating profit challenges in the first quarter of the year, with CFO Thomas Toepfer acknowledging that earnings were not particularly strong during that period.