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Boeing rival Airbus cut its outlook for the rest of the year due to hurdles in both its space and commercial airlines divisions, sending its stock sharply down on Tuesday morning.
Shares of the French plane maker dropped more than 11%, trading at €131.38 ($166.58). The company’s adjusted guidance comes on the heels of its stellar first-quarter performance, which saw it leave troubled Boeing in the dust.
Airbus said Tuesday that it is facing “persistent specific supply chain issues mainly in engines, aerostructures and cabin equipment,” which have caused it to lower its deliveries targets. The company now plans to deliver about 770 commercial aircraft this year, down from the 800 it projected earlier. Airbus also said it’s continuing to ramp up toward a rate of 75 A320 aircraft per month by 2027, one year later than its original target.
Airbus delivered 142 planes to customers in the first three months of 2024, almost twice as many as its American competitor Boeing, which has struggled with production amid heightened scrutiny after a door plug fell off one of its planes mid-flight in January.
Boeing’s troubles have only widened the gap between the two aerospace giants. Last year, Airbus delivered 735 commercial aircraft, while Boeing delivered 528. Given its current pace, Boeing might not even hit 350 deliveries by December.
The change in guidance forced Airbus to lower its expected adjusted earnings before interest and taxes (EBIT) to about €5.5 billion ($6.97 billion), from €5.8 billion ($7.35 billion).
In its Space Systems management unit, Airbus found “commercial and technical challenges” that have resulted in a €0.9 billion ($1.14 billion) hit in the first half of the year. This charge is mainly tied to new assumptions on schedules, workload, and sourcing, the company said, as well as risks and costs associated with telecommunications, navigation, and observation programs.
Airbus will disclose its complete half-year results on July 30.