Airbus SE targets nearly 800 deliveries as Boeing struggles with Max

By Siddharth Philip

Airbus SE said it plans to hand over about 800 aircraft this year, pushing output of its bestselling A320 family of single-aisle jets at a time when arch-rival Boeing Co. is stuck in crisis mode after a near-disastrous accident early last month. 
 

The European planemaker made the prediction on Thursday as it reported earnings for the full year and provided financial targets. The company had adjusted earnings before interest and tax of €5.8 billion ($6.2 billion) on revenue of €65.4 billion. Airbus said it will pay a €1.8 regular dividend, as well as a special €1 payout per share as its net cash exceeded €10 billion.

 

Airbus’s new output target widens the gap to its only global rival in the civil aircraft space. Boeing has been forced by US regulators to cap its own delivery plans, putting the company at a disadvantage as order books stretch out years and airlines continue to clamor for the latest, fuel-efficient aircraft. 

“In 2023 we recorded strong order intake across all our businesses and we delivered on our commitments,” Airbus Chief Executive Officer Guillaume Faury said in the statement. “This was a significant achievement given the complexity of the operating environment.”

Analysts surveyed by Bloomberg estimated adjusted operating profit of €5.4 billion for last year. Airbus took a €600 million charge at its space business. The company expects adjusted free cash flow to hit about €4 billion this year, down from €4.4 billion in 2023, while adjusted operating profit will reach as much as €7 billion.

The planemaker beat its annual delivery target in 2023, when it handed over 735 planes, more than the 720 it had initially predicted. Handing over its A321XLR long-range model will be delayed by a few weeks into the third quarter, Airbus said, because of the complexity tied to certification of the program.

Airbus has struggled to ramp up output of its bestselling A321neo model even as the backlog for the model stretches past the end of this decade. The Toulouse, France-based company reiteratedits long-term ambition of building 75 A320neo jets a month by 2026. 

Alongside existing part shortages, Airbus is contending with potentially flawed components on Pratt & Whitney engines powering its A320neo aircraft. More than 400 planes, or almost a third of the total Pratt-powered A320neo fleet, were grounded last month, according to a note to clients from Citi on Feb. 13. 

Airbus has said that it will work with Pratt to ensure sufficient engines for new aircraft along with ensuring an adequate supply of spare engines for the in-service fleet.