Airbus posts higher profit, removes near-term output goal

Europe’s Airbus on Wednesday posted higher-than-expected underlying operating profit for the second quarter and reaffirmed financial goals for the year, while removing an interim industrial target on the route to record jet output. The world’s largest planemaker said adjusted earnings before interest and tax rose 34% to E1.845b ($2.04b) as revenues grew 24% to E15.9b, buoyed by higher jet deliveries. Analysts had forecast quarterly operating profit of E1.725b on revenues of 15.867b, according to a company-compiled consensus. Airbus said it was “progressing well” towards a widely watched production goal for its best-selling A320neo-family jets of 75 jets a month in 2026, which it reaffirmed. But it withdrew any public mention of a previously stated interim goal of 65 a month by end-2024. Tactical adjustments will be made as required to meet the ultimate 75-per-month rate, “which is now the key reference point for the company and the supply chain,” Airbus said. CE Guillaume Faury denied the decision to retire the interim target from the company’s official releases signaled any lack of confidence in its production plans. He said the 65-a-month target - slightly above what Airbus was producing before the pandemic - had been an important milestone in post-COVID recovery that was no longer relevant. However some suppliers were surprised by the decision to remove the target. Airbus told them during the Paris Airshow last month that it saw “no change” to its goals, they said. <br/>