Aug 11 | 2021
(Europe) Doubles Earnings Forecast in ‘Unpredictable Environment’
Airbus, the world’s largest plane manufacturer, said it’s doubling its operating income forecast to €4 billion on the heels of better-than-expected first-half results.
The European aerospace giant also raised its outlook of commercial aircraft in the current fiscal year to 600 from a previous target of 566, while anticipating €2 billion of free cash flow before mergers and acquisition and customer financing.
The outlook “assumes no further disruptions to the world economy, air traffic, the company’s international operations and its ability to deliver products and services,” Airbus said in a statement.
As the basis for its 2021 guidance, the company assumes no further disruptions to the world economy, air traffic, the company’s internal operations, and its ability to deliver products and services.
“These half-year results reflect the commercial aircraft deliveries, our focus on cost containment and competitiveness, and the good performance in Helicopters and Defense and Space,” said Airbus CEO Guillaume Faury.
Airbus benefitted from numerous actions taken during the pandemic, and while it raised its guidance, “we continue to face an unpredictable environment,” Faury said.
Airbus reported a €2 billion second quarter operating profit, compared to a €1.23 billion loss earlier, while revenue increased 70 percent to nearly €14.2 billion. These beat analysts’ expectations of €1.59 billion in operating profit and €14 billion in revenue.
For the first half of FY21, Airbus reported EBIT of €2.73 billion, compared with a loss of €1.56 billion in the year earlier period. Consolidated revenue increase 30 percent to €24.6 billion
The airmaker is working to secure its A321neo ramp-up, attempting to fill the void of Boeing’s troubled 737 MAX. While transforming its industrial setup, Airbus is also completing plans to reduce jobs by 15,000 due to the pandemic.
Airbus has also launched a A350 freighter, going toe-to-toe with Boeing’s long-held dominance in this segment, “responding to customer feedback for increased competition and efficiency in this market segment,” Faury said.
