Published by Global Banking & Finance Review®
Posted on February 20, 2025
4 min readLast updated: January 26, 2026
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Airbus forecasts a 7% rise in jet deliveries for 2025, despite delays and new charges in its Space and Defence sectors.
By Gianluca Lo Nostro and Tim Hepher
(Reuters) -Airbus flagged short-term production pressures and confirmed a delay to its A350 freighter as it predicted a 7% increase in deliveries to around 820 jets this year, while continuing to clean up troubled space and defence projects.
Europe's largest aerospace group took a fresh charge of 300 million euros ($312.84 million) for its troubled Space business, while highlighting potential risks to the long-term future of its slow-selling A400M military transport aircraft.
Airbus reported adjusted operating income of 5.35 billion euros for 2024, down 8% and in line with expectations, including 2.56 billion in the fourth quarter as it grappled with ongoing snags in its supply chains.
Annual revenue rose 6% to 69.23 billion euros, of which 24.72 billion was generated in the three months to December 31.
Analysts had on average expected fourth-quarter core operating profit of 2.6 billion euros on sales of 24.68 billion, according to a company-compiled consensus survey.
Airbus' shares were down around 3% in early trading, after hitting record-highs a day earlier, with analysts pointing to the slightly weaker than expected EBIT burdened by space charges.
The planemaker, which delivered 766 jets last year, roughly in line with its target, has been facing industrial delays due partly to problems in the aerospace supply chain, which have also hampered the recovery of embattled U.S. rival Boeing.
"Specific supply chain challenges, notably with Spirit AeroSystems, are currently putting pressure on the ramp up of both the A350 and the A220," Airbus CEO Guillaume Faury told analysts during an earnings call.
The planemaker maintained all its medium-term output targets, however.
"Confidence in the future production rates for commercial programmes should be incrementally higher," RBC analysts said.
Airbus said it was delaying a new freighter version of its A350 wide-body jet by around a year to the second half of 2027, confirming a development delay previously reported by Reuters.
For 2025, Airbus forecast adjusted operating income to rise to about 7 billion euros, excluding any impact from threatened trade tariffs but including the integration of Spirit, in a sign that a final deal to absorb Airbus-related factories is close.
The France-based group is expected to take over two Spirit plants providing composite structural parts for the A350 and A220. It may also take over a smaller plant in Scotland if no alternative buyer can be found.
Airbus said the transaction would have a "broadly neutral" impact at the operating income level and weigh on free cashflow to the tune of "mid triple digit" millions of euros.
Airbus reported 4.46 billion euros of free cashflow in 2024 and forecast around 4.5 billion in 2025.
The company declared a 2 euro per share annual dividend, up 11% from the prior year, and said it planned to pay a 1 euro a share special dividend in 2025, on par with 2024.
SPACE AND DEFENCE
In Space, the latest charge brings to almost 2 billion euros the amount provisioned in two years on loss-making satellite projects, which industry sources have linked mainly to the OneSat programme of reprogrammable satellites.
Such losses have spurred talks to create a new venture grouping Airbus satellite activities with those of Thales Alenia Space to counter the runaway growth of Elon Musk's Starlink, though sources caution this may take some time.
Airbus also announced new charges of 121 million euros for the A400M, which has been hit by chronic delays, partial order cancellations by European launch nations and slow exports.
Airbus said it was assessing the potential impact of the uncertainty over orders on future manufacturing levels.
Powered by the West's largest turboprop engines, the A400M was commissioned in 2003 to give Europe an independent airlift capacity, rather than relying on the U.S.-built Lockheed Martin C-130 or the now out-of-production Boeing C-17.
Industry sources say Airbus has enough orders to keep A400M assembly ticking over for about three years, but that time is running out for the European army plane barring a surge of new orders or reversals of budget cuts as Europe reviews defence spending under pressure from U.S. President Donald Trump.
($1 = 0.9590 euros)
(Reporting by Gianluca Lo Nostro and Tim Hepher; Editing by Jamie Freed and Susan Fenton)
Airbus predicts a 7% increase in deliveries to around 820 jets this year, with adjusted operating income expected to rise to about 7 billion euros in 2025.
Airbus is experiencing short-term production pressures due to supply chain challenges, particularly with Spirit AeroSystems, affecting the ramp-up of the A350 and A220.
Airbus flagged a fresh charge of 300 million euros for its troubled Space business, bringing the total provisioned for loss-making satellite projects to almost 2 billion euros over two years.
Airbus confirmed a delay for the new freighter version of its A350, pushing the expected delivery to the second half of 2027.
Airbus reported free cash flow of 4.46 billion euros in 2024 and forecasts around 4.5 billion euros for 2025.
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