Airbus doubles profit targets … plan to boost competition with Boeing

Airbus SE has raised its profit and aircraft delivery forecast, and announced it will build a new freighter, a sign of growing optimism about a recovery in demand following the coronavirus pandemic.

The European aircraft maker plans to deliver 600 planes this year, which will help bring adjusted operating profit to 4 billion euros ($ 4.7 billion), double the previous target, said on Thursday. the company in a press release.

Airbus will offer a cargo version of the modern A350 widebody, as it seeks to undermine the competitive advantage of US company Boeing in this sector.

The latest figures confirm a strong recovery in aviation after Boeing announced its first profit in nearly two years. Airbus was more cautious earlier, targeting at least 566 deliveries this year as the airline industry recovers from the worst crisis in its history.

The revised target notes that carriers are firmly in recovery mode after the manufacturer has spent months working to avoid order cancellations.

“We continue to work with suppliers and customers to beat the pandemic, but we are starting to see a better environment,” said Guillaume Faury, CEO.

Airbus shares rose 4.9% and traded 3.3% to 119.4 euros at 9:12 am in Paris. The stock has gained 32% this year.

financial goals

China and the United States, with their huge domestic air markets, led the return of travel, with expectations improving further this week, with the UK announcing it would allow fully vaccinated visitors to America and the United States. ‘European Union to enter the country without the need for quarantine.

Airbus has also raised its adjusted free cash flow target. It is now expected to reach € 2 billion this year, up from previous equilibrium expectations.

The Toulouse, France-based aircraft maker reported first-half adjusted earnings before interest and taxes of € 2.7 billion, beating analyst estimates, with revenue up nearly a third compared to last year. It delivered 297 planes, an increase of 101 from the first six months of 2020, when shutdowns affected production.

Faury said the cargo version of the A350 is expected to enter service in 2025, after the project is approved by the council. He said the aircraft will be based primarily on the A350-1000, its larger version, and will have a payload of over 90 metric tons.