Airbus cuts guidance as supply-chain snags continue to bite

Airbus cut its earnings and aircraft-delivery goals for the year as persistent supply-chain issues continue to deprive the European planemaker of vital components, dealing a setback to the company at a time when demand for its jets is at a record. The company now expects to hand over 770 aircraft this year, down from a previous goal of 800, it said in a surprise announcement after European markets closed on Monday. Speaking on a call with reporters, CEO Guillaume Faury said the situation isn’t getting any better, requiring the company to adjust its goals. Airbus has long warned of supply-chain issues and a lack of skilled workers, after the pandemic first grounded the global aviation industry and then left it unprepared once air travel came roaring back. Demand for its aircraft has been particularly strong in the last two years as airlines clamor for modern models, further exacerbating the shortfall in required equipment and labor. The European planemaker now expects adjusted earnings before interest and tax of E5.5b ($5.9b) this year, down from a previous goal of as much as E7b. The company also cut its outlook for free cash flow before customer financing to about E3.5b. <br/>