Airbus Falls Just Short of Delivery Target in 2024
The European aerospace corporation, Airbus, has provisionally released over 765 jets to airlines and lessors in 2024, narrowly missing its headline delivery target, according to industry sources citing preliminary data.
A Strong Finish to the Year
In December alone, Airbus notionally delivered more than 122 planes, bringing the total for the year to just over 765. This strong finish to the year was crucial in helping the company avoid a potential second profit warning.
Supply Chain Challenges Persist
Despite the deal struck in November to secure extra engine supplies, Airbus faced persistent problems with interior supplies, leading to complex negotiations between airlines, the planemaker, and seat suppliers. As a result, some deliveries had to be shelved, ultimately leaving the 770 target out of reach.
Auditing and Discretion
The data is subject to a routine audit and can change at the last minute. Additionally, there is some discretion allowed in whether deliveries can be booked before the change of ownership is complete. However, one source noted that such “paper” deliveries had fallen in 2024.
Preparing for a Miss
Airbus had previously prepared the ground for a slight miss in the delivery target, telling analysts that a shortfall of less than 20 jets would not be considered material and therefore not serious enough to warrant a new profit warning.
Commercial Jet Deliveries Drive Profits
Airbus generates the bulk of its operating profits and most of its cash flow from commercial jet deliveries. As such, the company’s ability to meet its delivery targets is crucial to its financial performance.
Looking Ahead to 2025
Airbus will provide forecasts for 2025 with its full results on February 20. Bloomberg News reported on Thursday that Airbus had delivered around 760 planes in 2024.
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