Airbus expects 7% rise in jet deliveries this year
Airbus faces supply chain snags but expects 7% rise in jet deliveries
Airbus has reported short-term production pressures and a delay to its A350 freighter, while projecting a 7% increase in jet deliveries to around 820 aircraft in 2025.
Airbus revealed it took a fresh charge of 300 million euros ($312.84 million) for its struggling Space business. The company also flagged risks to the future of its A400M military transport aircraft, which has been slow to sell. Despite these challenges, the company remains committed to its medium-term goals, reports Reuters.
Airbus reported adjusted operating income of 5.35 billion euros for 2024, a decline of 8%, which was in line with analysts' expectations. Revenue for the year rose by 6%, totaling 69.23 billion euros, with 24.72 billion euros coming in the fourth quarter alone.
Supply Chain Delays and Production Ramp-up
Airbus, which delivered 766 jets in 2024, has been dealing with industrial delays primarily caused by supply chain disruptions. These issues have also affected Boeing, Airbus’s main competitor. The company pointed to short-term pressure on its A320 and A350 production lines, notably due to delays from U.S. supplier Spirit AeroSystems.
Despite these challenges, Airbus maintained its medium-term output targets. The company also confirmed a delay to the freighter version of its A350 wide-body jet, now expected in the second half of 2027, roughly one year later than initially planned.
Future Outlook and Integration of Spirit AeroSystems
Looking ahead to 2025, Airbus forecast adjusted operating income to rise to about 7 billion euros, excluding any potential trade tariff impacts but including the integration of Spirit AeroSystems.
Airbus is set to absorb two Spirit plants that supply composite structural parts for the A350 and A220, with the deal expected to have a broadly neutral impact on operating income, though it will weigh on free cash flow.
In terms of financial performance, Airbus reported free cash flow of 4.46 billion euros for 2024 and forecast a similar 4.5 billion euros for 2025. The company also declared a dividend of 2 euros per share, an 11% increase from the previous year, and announced plans for a 1-euro special dividend in 2025.
Additionally, Honda Motor is open to resuming merger negotiations with Nissan Motor—potentially forming the world’s fourth-largest automaker—but only if Nissan CEO Makoto Uchida steps down.
