Airbus adjusts aircraft delivery targets, reserves funds for satellite business amid supply chain issues
Date
6/25/2024 4:35:14 AM
(MENAFN) On Monday, Airbus, the prominent European aerospace corporation, disclosed that it will deliver fewer aircraft in 2024 than originally anticipated, attributing this shortfall to persistent supply chain disruptions. Specifically, the company highlighted challenges in obtaining crucial components such as engines, airframes, and cabin equipment. Initially, Airbus had projected delivering 800 commercial aircraft in 2024, but this target has been revised down to 770. This adjustment marks a decrease of 30 units from the initial forecast and reflects ongoing supply chain difficulties that have plagued the industry. Last year, Airbus managed to deliver 735 commercial aircraft, and the anticipated increase to 800 deliveries for 2024 was seen as a significant goal.
The delivery of aircraft is a critical financial milestone for Airbus, as the company receives payments upon the successful delivery of planes to customers. Therefore, any reduction in the number of deliveries can have substantial financial implications. In addition to revising its delivery targets, Airbus announced a financial measure concerning its satellite division. The Space Systems Management Team has conducted a comprehensive review of all its programs, leading to the decision to reserve a fee of €900 million ($965 million) from the profits of the first half of the year. This substantial reservation underscores the challenges and financial considerations within the satellite business segment, indicating a cautious approach to managing and allocating resources amid a turbulent supply environment.
Overall, these announcements from Airbus underscore the multifaceted challenges the company faces in maintaining its production and delivery schedules, as well as managing its diverse business operations in the aerospace sector.
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