Shares of Airbus (AIR) are down 11% after the commercial aircraft maker lowered its 2024 guidance related to both aircraft deliveries and its earnings.
The Dutch-based company, which holds a duopoly over commercial aircraft manufacturing with Boeing Co. (BA), said it now expects adjusted earnings of 5.5 billion euros ($5.9 billion U.S.), down from a previous estimate of 6.5 billion to 7 billion euros.
The lowered earnings outlook coincides with reduced deliveries, with Airbus saying it is now likely to deliver 770 commercial aircraft this year compared to 800 expected previously.
Airbus also delayed its timeline for ramping up production of its newest A320 aircraft.
The lowered guidance sent Airbus’ stock down 11% in European trading.
The company blamed the reduced guidance on supply chain issues related to aircraft engines and cabin equipment.
Airbus has also faced pressure due to ongoing safety problems and reduced output from rival Boeing, which is based in the U.S.
Airbus’ next financial results, which it reports every six months, is scheduled for July 30.
The stock of Airbus is now down 8% on the year and trading at 130.56 euros per share.
