Airbus Navigates Turbulence with Engine Shortages and Production Boosts
Airbus is dealing with engine shortages impacting aircraft deliveries, maintaining a target of 820 jets for the year despite delays. The world's largest planemaker reported a higher-than-expected profit, with its defence and helicopter businesses boosting revenues. Production of the A330neo jet will increase to meet demand.
European planemaker Airbus has reported an increase in completed aircraft awaiting engines for delivery, despite reaffirming its delivery targets for the year. The company has a backlog of 60 aircraft, up from 40 last month, and aims for a 7% rise in annual deliveries to 820 jets.
Airbus CEO Guillaume Faury said meeting these targets won't be easy, but has secured commitments from engine suppliers to support its goals. Engine supply from CFM International and Pratt & Whitney faces delays, affecting Airbus' production and cash flow. Despite this, Airbus's financial targets remain firm.
In a positive turn, Airbus posted a higher-than-expected second-quarter profit, bolstered by its defence and helicopter businesses. The planemaker also announced an increase in A330neo production to meet growing demand. Additionally, Airbus expects to complete an asset acquisition from Spirit AeroSystems by the year's end.
(With inputs from agencies.)
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