Airbus Logs Sharp Profit Drop After Recent Supply-Chain Setbacks — Update

By Mauro Orru

Airbus posted a slump in profit for the second quarter and confirmed it would deliver fewer planes than initially forecast this year amid persisting supply-chain hurdles.

The European plane maker said it is still aiming for roughly 770 plane deliveries this year, below an original target of about 800 that Airbus lowered last month due to challenges in procuring engines, aerostructures and cabin equipment.

For the three months to the end of June, Airbus posted revenue of nearly 16 billion euros ($17.31 billion), up just 1% on year.

Net profit plunged 78% to EUR230 million, while adjusted earnings before interest and taxes--Airbus's preferred measure of profitability--slumped 56% to EUR814 million.

Analysts had forecast revenue of EUR15.82 billion on a net profit of EUR566 million and adjusted EBIT of EUR699 million, according to a market consensus provided by the company based on estimates from 20 analysts.

For the year, Airbus continues to expect adjusted EBIT of around EUR5.5 billion. Free cash flow before customer financing--a metric closely watched by analysts and investors--is projected at around EUR3.5 billion.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

July 30, 2024 12:19 ET (16:19 GMT)

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