Airbus raises cashflow target on strong dollar

EUROPE’S Airbus raised its 2022 free cashflow forecast on the back of a strong dollar and reaffirmed delivery and production targets while delaying the projected introduction of its newest jet, the A321XLR, by a few months.

Third-quarter revenues were also partially boosted by the US currency while adjusted operating earnings rose 26 per cent to 836 million euros (S$1.17 million), the world’s largest planemaker said on the 50th anniversary of its maiden A300 test flight.

Quarterly revenues rose 27 per cent to 13.31 billion euros.

For 2022, Airbus raised its target for free cashflow before M&A and customer financing by a billion euros to 4.5 billion. It maintained other annual targets including 700 jet deliveries.

It delayed the entry to service of its A321XLR long-range single-aisle jet, which has been facing questions over certification of a new fuel tank, to the second quarter of 2024 from early 2024. All three test planes have flown, it said. Analysts were on average expecting quarterly adjusted operating income of 887 million euros on revenues of 12.848 billion, according to a company-compiled consensus. REUTERS