A Lufthansa Airbus A340-313 aircraft taxis at Los Angeles International Airport prior to departure to Frankfurt on May 5, 2024 in Los Angeles, California.
Kevin Carter | Getty Images News | Good pictures
Airbus shares fell 9% on Tuesday intersects its targets Including aircraft distribution and revenue for 2024.
Airbus on Monday said It expects its adjusted earnings before interest and taxes to come in at around 5.5 billion euros ($5.9 billion). Previous assessment 6.5 to 7 billion euros was confirmed on April 25.
The company said it expected to deliver approximately 770 business jets this year, compared with an earlier outlook of closer to 800, as Airbus delayed a target deadline to ramp up production of its A320 planes.
The company’s Europe-listed shares fell 9.17% at 8:27 a.m. London time.
The guidance cuts are partly linked to supply chain issues at Airbus’ commercial airline business, the company said.
“Airbus faces a series of specific supply chain issues, mainly in engines, aerostructures and cabin equipment,” the company noted.
Airbus faces additional costs in its aerospace systems division. It recognized “commercial and technical challenges” in the business, so Airbus said it booked around 0.9 billion euros in the first half of 2024.
“These mainly relate to updated assumptions about the schedules, workload, resource, risks and costs of specific telecommunications, navigation and surveillance projects throughout their life,” the agency said.
Airbus will release its half-year results on July 30.
Earlier this year, Airbus’ operating profit for the first quarter was weaker than expected, with CFO Thomas Toffer telling CNBC at the time that the company’s earnings were “not particularly strong.”