Airbus SE boosted its earnings and cash-flow targets for the second time this year, banking on a recovery in air travel to support its push to boost jetliner output.
Adjusted operating profit will reach 4.5 billion euros ($7.04 billion), compared with 4 billion euros previously forecast, the European planemaker said in a statement Thursday. The company stood by an earlier goal of delivering 600 jets this year, even after third-quarter handovers disappointed some investors.
The strong financial performance comes as Airbus seeks to rally suppliers and customers in support of a significant ramp-up of production through 2025. Aircraft lessors and enginemakers have pushed back against those plans, with Raytheon Technologies Corp. Chief Executive Officer Greg Hayes saying Tuesday that he wasn’t sure the market would support build rates of 75 A320-series jets per month.
“We are focused on securing the A320 family ramp up and striving to ensure the right industrial and supply chain capabilities are in place,” said Airbus Chief Executive Officer Guillaume Faury said in the statement.
Free cash flow before M&A and customer financing is expected to hit 2.5 billion euros this year, versus the earlier outlook for 2 billion euros.
Airbus already boosted its financial targets in July, after accelerating production goals earlier in the year. For the first nine months, adjusted earnings before interest and taxes reached 3.4 billion euros, on 35.2 billion euros in revenue.
Airbus also updated its production plans, targeting a rate of 65 per month on the A320 program by summer 2023, versus previous target of 64 in the second quarter of that year. A planned ramp-up of the larger A350 will also come slightly later, with build rates now seen going from five a month to six in early 2023 rather than late 2022.
The company set a date to increase production of its A330 widebody with plans to build almost three planes a month at the end of 2022 from two currently. German airline Condor ordered seven of the model in August.
Photo: Airbus
