Airbus Raises 2021 Guidance After Returning to Profit in 2Q

   By Olivia Bugault 
 

Airbus SE on Thursday raised its full-year guidance and swung to a net profit in its second quarter, and it said its board approved the launch of an A350 freighter derivative.

The European plane maker said it expects to deliver 600 commercial jets this year, compared with a previous target to at least match the 566 deliveries it achieved last year. It forecast adjusted earnings before interest and taxes in 2021 of four billion euros ($4.74 billion), up from a previous target of EUR2 billion euros, and it said free cash flow before mergers, acquisitions and customer financing should now come at EUR2 billion. This compares with a previous target of at least break-even.

The new guidance follows the company's solid performance in its first half and assumes no further disruptions to the world economy and air traffic because of the coronavirus pandemic, it said.

Net profit for its second quarter was EUR1.87 billion, compared with a net loss of EUR1.44 billion a year earlier, while revenue rose 70% to EUR14.18 billion.

Airbus's more closely watched adjusted earnings before interest and taxes also swung to a profit, of EUR2.01 billion.

"We are now working to secure the A320 Family ramp-up while transforming the industrial set up," Airbus's chief executive Guillaume Faury said. "Furthermore and following board approval, we are enhancing our product line with an A350 freighter derivative, responding to customer feedback for increased competition and efficiency in this market segment."

Write to Olivia Bugault at [e-mail]

(END) Dow Jones Newswires

July 29, 2021 01:15 ET (05:15 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.