Airbus Maintains Delivery Target Despite Revenue Dip

Airbus has maintained its 2026 aircraft delivery target of 870 despite a 2% revenue drop in the third quarter, the company announced on Wednesday. This target, if met, would be a record high for the world's largest planemaker. The company reported a 2% decrease in revenue, falling to $20.3 billion for the three months ending in September, which was below analyst estimates of $20.8 billion. The adjusted operating profit for the same period was $2.1 billion, which met analyst expectations.

Airbus has delivered 547 aircraft so far this year, keeping it ahead of its US rival Boeing, which has delivered 475 aircraft in the same period. Airbus expects to deliver a record number of aircraft in the final quarter of the year, which will be crucial for meeting its annual target. The company has previously faced disruptions due to engine shortages and supply-chain constraints, but it reports that these pressures have recently begun to ease.

Boeing, on the other hand, has faced significant setbacks. The company's CEO, Kelly Ortberg, announced on Tuesday that Boeing would miss its 737 production and jet-delivery targets for the year. This news led to a nearly 10% drop in Boeing's shares, marking their worst day in over 18 months. Boeing also expects its free cash flow to grow slower than initially anticipated, reaching its $10 billion target in 2029, a year later than previously expected.

Boeing's struggles come after years of crises and controversies that have impacted its reputation and financial performance. The company is currently recovering from these challenges, which have included production delays and supply-chain issues. Airbus, while facing its own challenges, has managed to maintain its production goals and delivery targets, positioning itself as a leader in the aerospace industry.

Airbus's free cash flow before customer financing since January was negative $1.5 billion, reflecting higher inventories as the company prepares for a stronger delivery performance in the final months of the year. The company has traditionally delivered more aircraft in the final quarter, but past disruptions have sometimes forced it to cut delivery targets late in the year.