Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
  1. Homepage
  2. Equities
  3. France
  4. Euronext Paris
  5. Airbus SE
  6. News
  7. Summary
    AIR   NL0000235190


SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Airbus : secures jet deliveries after crisis workarounds -sources

07/28/2021 | 12:08pm EDT
FILE PHOTO: A logo of Airbus is seen at the entrance of its factory in Blagnac near Toulouse

PARIS (Reuters) - Airbus is set to deliver more than 600 jets this year after a strong first half driven in part by deals that allow some carriers to delay accounting for new planes on their balance sheets, industry sources said.

The financial structures are part of a raft of innovations and compromise deals thrashed out by the European planemaker as it tries to keep cash rolling in during the pandemic.

Most analysts expect the recent delivery trend to contribute to solid first-half results on Thursday.

Airbus has predicted full-year deliveries at least equivalent to last year's total of 566, down 34% from 2019.

In this year's first half, Airbus delivered 297 aircraft after a surge in June, putting it on course to exceed full-year targets given its pattern of speeding deliveries late in the year, according to industry sources and some analysts.

Internally, the planemaker is provisionally aiming for more than 600 deliveries this year, several sources said.

Deliveries are vital for aerospace companies because they mark the point at which the bulk of a jet's value - ranging from $40 million or more - reaches the manufacturer's coffers and help defray huge development costs.

The task of keeping up deliveries has emerged as the number one priority for Airbus' commercial and financing teams, previously focused on winning ever-more multi-billion-dollar plane deals.

Traditional order hype at now-cancelled air shows has given way to concerns about whether planes announced at previous events will be delivered, particularly among southeast Asian carriers widely said to have over-ordered jets in the past.

At the same time, Airbus faces increased demand for planes like the best-selling A321neo in later years, because of the woes facing rival Boeing's recently grounded 737 MAX and a tide of planes pushed back this year to delivery dates mid-decade.

To ensure deliveries, Airbus has, in some cases, agreed advances to carriers, delivery deferrals and, in several cases, financial deals allowing cash payments to be decoupled from the transfer of ownership, at least temporarily, industry sources said.

Under these so-called advance delivery agreements, Airbus is paid virtually in full but the asset may not immediately wind up on the airline's books, delaying the point at which it must start absorbing depreciation charges on its bottom line.

The aircraft is meanwhile temporarily stored.

Sources said the mechanism, which can involve financial third parties, has been approved by auditors because it includes an irrevocable commitment to transfer ownership of the aircraft at a specific date, while Airbus receives enough to book a sale.

Airbus had no immediate comment.


Airbus and other manufacturers have also scrambled to simplify deliveries and in some cases offered to fly planes to airlines unable to send pilots due to travel restrictions.

Chief Commercial Officer Christian Scherer told reporters in June that Airbus had fewer than five aircraft left without homes after month of crisis management with airlines, having reached out to customers as soon as lockdown paralysed demand.

Rival Boeing posted its first quarterly profit in almost two years on Wednesday, as deliveries of its 737 MAX also gained traction.

Even so, negotiations can be tough and more "contractual" than in the past, suspending the often clubby atmosphere of an industry dependent on long-term relationships, sources said.

"If you have a plane in production now, the pressure to take delivery is huge. If you have a delivery in the middle of the decade, Airbus would be happy for you to release it so that it can offer that slot to someone else," a senior financier said.

In one compromise, Airbus booked an order for five A350 wide-bodied jets from Lufthansa in June, while simultaneously agreeing to cancel three previous orders. One source said the new order involved rowing back on earlier cancellation rights.

The order reshuffle was part of a fleet restructuring that also saw Lufthansa buy five more competing Boeing 787s.

Lufthansa denied, however, a media report that its chief executive Carsten Spohr had clashed by video call with his Airbus counterpart over payments for aircraft. Such matters are not typically discussed at CEO level, a spokesman said.

"There are always tough negotiations, but we have a good underlying partnership," he added.

(Reporting by Tim Hepher; editing by Carmel Crimmins)

By Tim Hepher

© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
AIRBUS SE -1.60% 113.04 Real-time Quote.25.91%
DEUTSCHE LUFTHANSA AG 2.61% 8.21 Delayed Quote.-24.09%
All news about AIRBUS SE
09/17Airbus reaches deal to restructure AirAsia jet order -sources
09/17STELIOS HAJI-IOANNOU : EasyJet shareholder Stelios Haji-Ioannou shuns rights iss..
09/17AirAsia X aims for end-Oct creditor meetings as talks progress
09/17STELLANTIS N : CEO To Leave Airbus Board By 2022
09/17CARLOS TAVARES : Stellantis CEO to Step Down From Airbus Board of Directors
09/16AIRBUS : Phoenix Police Department to upgrade fleet with five new H125 helicopte..
09/16AIRBUS : helps British Airways make history
09/16AIRBUS : and Air New Zealand to study potential for hydrogen-powered aircraft
09/16AIRBUS : The Phoenix Police Department has signed a new order to upgrade its air..
09/16EUROPEAN MIDDAY BRIEFING : Stocks Rise as -2-
More news
Analyst Recommendations on AIRBUS SE
More recommendations
Sales 2021 52 867 M 61 986 M 61 986 M
Net income 2021 2 818 M 3 305 M 3 305 M
Net cash 2021 5 820 M 6 824 M 6 824 M
P/E ratio 2021 29,3x
Yield 2021 0,74%
Capitalization 88 825 M 104 B 104 B
EV / Sales 2021 1,57x
EV / Sales 2022 1,36x
Nbr of Employees 126 050
Free-Float 74,1%
Duration : Period :
Airbus SE Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends AIRBUS SE
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 21
Last Close Price 113,04 €
Average target price 138,09 €
Spread / Average Target 22,2%
EPS Revisions
Managers and Directors
Guillaume Faury Chief Executive Officer
Dominik Asam Chief Financial Officer
René Richard Obermann Chairman
Sabine Klauke Chief Technical Officer
Alberto Jose Gutierrez Moreno Chief Operating Officer
Sector and Competitors
1st jan.Capi. (M$)
AIRBUS SE25.91%104 267
TEXTRON INC.42.00%15 344