Airbus Lifts Profit, Targets Higher Deliveries in 2025 Despite Order Slowdown
Airbus reported higher profits for 2024 and set an optimistic outlook for 2025, despite facing supply chain challenges and a decline in overall order intake.
The European planemaker posted a six percent rise in consolidated revenues to €69.2 billion, up from €65.4 billion in 2023, driven by increased commercial aircraft deliveries.
Net income climbed 12 percent to €4.23 billion, compared to €3.79 billion a year earlier.
The company aims to deliver around 820 commercial aircraft in 2025, targeting an EBIT Adjusted of €7.0 billion and free cash flow before customer financing of €4.5 billion. This guidance assumes stable global trade and no further disruptions to the supply chain.
Airbus delivered 766 commercial aircraft in 2024, including 75 A220s, 602 A320 Family, 32 A330s, and 57 A350s, surpassing Boeing’s 528 deliveries, which were hampered by ongoing safety concerns and regulatory scrutiny.
Despite Airbus’ delivery growth, gross commercial aircraft orders dropped sharply to 878 from 2,319 in 2023, with net orders of 826. The backlog stood at 8,658 aircraft at year-end.
The company’s EBIT Adjusted fell eight percent to €5.35 billion from €5.84 billion in 2023, mainly due to charges in its Defence and Space division, which recorded a €566 million loss following a €1.3 billion hit on space programmes.
Airbus Helicopters, however, saw EBIT Adjusted rise to €818 million from €735 million, boosted by higher deliveries and service growth.
Airbus’ 2024 order intake by value halved to €103.5 billion from €186.5 billion in 2023, though the order book grew to €629 billion, helped by a strong US dollar.
Free cash flow before customer financing was steady at €4.46 billion, while the net cash position rose to €11.8 billion.
The A320 Family ramp-up remains a priority, with Airbus targeting 75 aircraft per month by 2027.
The A350 programme faces pressure due to supply issues with Spirit AeroSystems, though Airbus still aims for a production rate of 12 aircraft per month by 2028.
The Board of Directors proposed a dividend of €2.00 per share and a special dividend of €1.00, reflecting confidence in future performance.
While Airbus maintained its market lead over Boeing in deliveries, the drop in new orders highlights industry-wide challenges, including supply chain constraints and shifting demand dynamics.
Boeing, grappling with safety-related setbacks, secured 1,314 net orders in 2024, outpacing Airbus’ net total but trailing in deliveries, highlighting the competitive pressures both manufacturers face in a volatile market.
gandae@businessdayafrica.org