Airbus falls short of annual delivery target by a narrow margin in 2024- Reuters

Investing.com -- Airbus missed its annual delivery target marginally in 2024, as it provisionally delivered over 765 aircraft to airlines and leasing companies, according to Reuters, citing preliminary data from industry sources.

The European aircraft manufacturer had set a target of "around 770" deliveries for the year. In December alone, Airbus delivered more than 122 planes, pushing the total for the year slightly over 765. However, the company has not confirmed these figures and has chosen to withhold any details until its annual commercial update on January 9, as the numbers are currently under audit.

The delivery target was lowered in July 2024 due to supply chain issues. Airbus managed to avoid a second potential profit warning after securing a deal for additional engine supplies in November. However, the supply of interiors remained a consistent problem, leading to some deliveries being postponed. This resulted in the delivery target of 770 aircraft being narrowly missed.

The production of single-aisle jets, a key performance indicator, has reached approximately 60 per month, up from around 50, as supply chains have been recovering from the impact of the pandemic. Airbus has set a target of producing 75 of these jets per month by 2027.

Despite the miss, Airbus had previously informed analysts that a shortfall of fewer than 20 jets would not be deemed significant enough to prompt a new profit warning. This margin of error was reiterated by an Airbus spokesperson, who referenced CEO Guillaume Faury's comments during the third-quarter results discussion in October.

Commercial jet deliveries form a major part of Airbus's operating profits and cash flow. Bloomberg News reported on Thursday that Airbus had delivered approximately 760 planes in 2024. The company is set to provide forecasts for 2025 during its full results announcement on February 20.

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Source: Investing.com