Airbus shares fall as the company lowers its 2024 guidance on targets and delivery

Airbus shares fell nearly 11% on Tuesday after the company said it would cut its targets for 2024, including aircraft deliveries and profits.

Airbus said on Monday that it now expects its adjusted earnings before interest and tax to reach about 5.5 billion euros ($5.9 billion), down from the previous estimate of 6.5 to 7 billion euros confirmed on April 25.

The company said it now expects to deliver nearly 770 commercial aircraft this year, compared to a previous forecast of closer to 800. Airbus also delayed the target schedule for ramping up production of its A320 aircraft.

The company's European-listed shares fell 10.85% at 11:37 am London time.

The company said the guidance cuts were partly related to supply chain issues in Airbus' commercial aircraft business.

The company noted that “Airbus faces ongoing problems in the supply chain, especially in engines, airframes and cabin equipment.”

Airbus said it also faces additional costs in its space systems division. Airbus said it recognized the “commercial and technical challenges” in the business and therefore recorded charges of around 0.9 billion euros in the first half of 2024.

“These primarily relate to updated assumptions on timelines, workload, sources, risks and costs over the life of certain communications, navigation and surveillance programmes,” the company said.

Airbus's semi-annual results are scheduled to be released on July 30.

Earlier this year, Airbus' first-quarter operating profits came in weaker than expected, with Chief Financial Officer Thomas Toepfer at the time telling CNBC that the company's profits were “not particularly strong.”