[AIR] Airbus shares dropped 9% on earnings and lower guidance

Airbus shares dropped 9 percent after the company reduced its 2024 guidance for aircraft deliveries and earnings. Airbus announced its adjusted earnings before interest and taxes would be around €5.5 billion, down from the previously estimated €7 billion. The company now expects to deliver approximately 770 commercial aircraft this year, compared to an earlier forecast of around 800. Additionally, Airbus postponed its production ramp-up timeline for the A320 aircraft. The guidance cuts are attributed to persistent supply chain issues, particularly in engines, aerostructures, and cabin equipment. Airbus is also incurring additional costs in its space systems division, recognizing €900 million in charges due to commercial and technical challenges. These challenges are related to updated assumptions on schedules, workload, sourcing, risks, and costs over the lifetime of certain telecommunications, navigation, and observation programs.