By Mauro Orru

Airbus lost about $15 billion in market value after the group lowered its commercial aircraft delivery goal and financial targets for the year due to supply-chain hurdles and an impairment related to its space activities.

Airbus shares in Paris slumped 12% on Tuesday, bringing the company's market value down to around 103.84 billion euros ($111.48 billion), according to FactSet. The group's market value stood at about EUR118 billion on Monday.

The European plane maker said in an update to investors late Monday that it would no longer be able to deliver about 800 planes to customers this year and it lowered that goal to roughly 770, citing persistent supply-chain issues in engines, aerostructures and cabin equipment.

The aviation industry has been agonizing for years over supply-chain snags that have made it harder to procure some raw materials and spare parts, slowing aircraft production and, consequently, deliveries.

Airbus Chief Executive Guillaume Faury said in a call on Monday that engines had become a significant issue in recent months, adding that both RTX-owned Pratt & Whitney and CFM International--a joint venture between GE Aerospace and Safran--were falling short of deliveries.

Pratt & Whitney and CFM International didn't respond to requests for comment.

Shares of companies like MTU Aero Engines, Rolls-Royce Holdings and Safran that supply engines and aircraft equipment fell Tuesday as investors digested supply-chain remarks from Airbus management.

The downgrade to its aircraft delivery goal comes as Airbus is cashing in on orders while its rival Boeing continues to grapple with the fallout from an Alaska Airlines emergency landing in January that prompted a temporary grounding and immediate inspections of Boeing 737 MAX jets.

Airbus counted 237 net orders through May this year compared with Boeing's 130. Now, Airbus faces the task of making good on those orders while it navigates strained supply chains as airlines are still scrambling for planes to meet strong demand for international air travel.

Meanwhile, the group said it expects to produce 75 of its A320 narrow-body aircraft a month in 2027, a year later than planned. For the A330 wide-body, it is still aiming for four a month in 2024, and 12 of its bigger A350 model a month in 2028.

Airbus also faces challenges in its space activities. The group said it would book a charge of roughly EUR900 million in its first-half balance sheet due to updated forecasts on schedules, workload, sourcing, risks and costs over the lifetime of some telecommunications, navigation and observation programs.

The group now expects adjusted earnings before interest and taxes--its preferred measure of profitability--of around EUR5.5 billion this year, down from a previous forecast range of EUR6.5 billion to EUR7 billion. Free cash flow before customer financing--a metric closely watched by analysts and investors--is projected at around EUR3.5 billion, down from roughly EUR4 billion previously.

Write to Mauro Orru at

(END) Dow Jones Newswires

06-25-24 0958ET