(BFM Bourse) – The European aircraft manufacturer has largely achieved its objective of 720 aircraft delivered for 2023, with 735 units finally shipped to its customers. This allows the market to be optimistic for the current year.
Unlike last year, Airbus achieved its delivery target without too much difficulty. Set at 720 units, this target was largely exceeded, the aircraft manufacturer having finally shipped 735 aircraft to its customers, thanks to a thunderous month of December (112 deliveries) which however did not constitute a record (138 in December 2019) .
This allows Airbus to claim for the fifth consecutive year the title of leading aircraft manufacturer in the world ahead of its eternal American competitor Boeing, which has only delivered 528 aircraft and is currently mired in its setbacks with the 737 Max, its flagship single-aisle aircraft which struggles to compete with Airbus’ A320 neo family.
Deutsche Bank also highlights the record order intake (2,319 gross) for 2023 from Airbus, which “bodes well for cash generation in the second half”, because the orders are accompanied by payment of installments.
>> Access our exclusive graphic analyses, and gain insight into the Trading Portfolio
Tensions easing
Airbus’ performance on deliveries was achieved without too many problems. Airbus Executive Chairman Guillaume Faury said in a conference call with journalists on Thursday evening that unlike other years, the end of 2023 had been “fluid”, with less pressure on teams to achieve goals.
Remember that deliveries are closely monitored by the market, because most of the payment for an aircraft occurs when it is received by its customer. Deliveries thus give an idea of the evolution of the company’s cash generation.
Jefferies estimates that with 735 aircraft delivered, Airbus should have “comfortably” achieved its financial targets for the 2023 financial year, namely adjusted operating profit of 6 billion euros and cash flow of 3 billion euros.
Since 2021, Airbus has been carrying out a significant ramp-up in its production, which is proving delicate because it imposes increasing efforts on its suppliers, its supply chain and its teams. For example, on its “blockbuster”, the A320 neo family, the aircraft manufacturer must go from 40 aircraft produced each month in 2021 to 75 in 2026.
Tensions on parts, engines or labor penalized this ramp-up in production in 2022 and early 2023.
But Guillaume Faury indicated Thursday evening that these tensions were now less acute. “The supply chain is still tight but it’s getting better,” he said. “We are no longer in the situation of 2022 and early 2023 where our suppliers were bottlenecks,” he added.
More than 800 planes in 2024?
For his part, Christian Scherer, director of the commercial aeronautics division of Airbus Group, assured that the good trend in demand would continue, because 70% of the current fleets are made up of old generation aircraft, which will therefore have to be replaced by devices that consume less fuel and therefore Co2.
Christian Scherer also assured that the current difficulties with the GTF engine from the equipment manufacturer Pratt&Whitney, which result in recalls of A320 neo aircraft in operation, should not have a major impact on deliveries for 2024.
Airbus will communicate its financial objectives for the current year in February and should at that time give its delivery target for 2024. Thursday evening, Guillaume Faury did not mention the slightest figure but simply dismissed the idea that the record of 2019 of 863 planes could be beaten this year.
However, analysts see deliveries accelerating significantly. Bank of America judges that management’s comments on the reduction in logistical tensions “are encouraging and somewhat reduce the risks for 2024”, a year for which the establishment expects 800 deliveries.
Royal Bank of Canada even estimates that given Airbus’ good end of the year, market expectations for deliveries could be revised upwards, with the consensus currently standing at 817 aircraft, according to the bank. Canadian. Jefferies, for its part, considers that Airbus could announce, next month, a delivery target of between 810 and 820 aircraft for 2024.
Following Airbus’ announcements and enthusiastic comments from analysts, Airbus shares progressed significantly on the Paris Stock Exchange, rising 2.25% to 147.12 euros around 1:00 p.m., the fourth largest increase in the CAC 40, with a new historic record in session at 147.76 euros touched at 10:19 a.m.
Julien Marion – ©2024 BFM Bourse
Are you following this action?
Receive all the information on AIRBUS GROUP in real time: