News
Airbus on flight path to bigger than forecast profit
October 29th 2021
Airbus expects to deliver 600 aircraft this year and has upgraded its full-year earnings guidance after a better than predicted financial performance in the first nine months of its fiscal year. Read More » The European manufacturer is looking at a full-year operating profit of 4.5 billion euros ($US5.26 billion) and free cash flow of 2.5 billion euros. This is an increase from its previous estimate of 4 billion euros and 2 billion euros in free cash flow. For the nine months to September 30, Airbus reported earnings of 3.4 billion euros on revenues of 35.2 billion euros. “The nine month results reflect a strong performance across the company as well as our efforts on cost containment and competitiveness,” said Airbus chief executive officer, Guillaume Faury. ”As the global recovery continues, we are closely monitoring potential risks to our industry. Based on our nine month performance, we have updated our 2021 earnings and cash guidance. We are strengthening the balance sheet to secure investment for our long-term ambitions.” The company is working on an A320 family ramp up that is on a trajectory to achieve a monthly rate of 65 aircraft by the summer of 2023, which was roughly in line with previous estimates. Lessors have raised concerns an aggressive production ramp- up could upset the fragile post-COVID-19 market and suppliers also have expressed misgivings. “We are focused on securing the A320 Family ramp up and striving to ensure the right industrial and supply chain capabilities are in place,’’ Faury said. The A220 production rate, which is at five aircraft a month, is expected to increase to around six a month in early 2022, with a monthly production rate of 14 envisaged by mid-decade. Airbus said the recent commercial successes of the A330 program will enable a monthly rate increase from around two to almost three of the type at the end of 2022, while the A350 program will increase from around five to about six aircraft each month in early 2023.
