Airbus boosts profits in 2024 as deliveries climb, expanding lead over Boeing

European aircraft giant Airbus posted a 12% rise in net profit for 2024, reaching €4.2 billion ($4.4 billion), as commercial aircraft deliveries rose by 4.2% to 766 units. Revenue climbed 6% to €69.2 billion, reinforcing Airbus’s dominance over Boeing, which suffered an $11.8 billion loss in the same period.

Deliveries Drive Growth

Airbus’s ability to ramp up production is proving to be a key advantage. Airlines typically pay upon delivery, making the 4.2% increase in aircraft handovers crucial for revenue growth. Meanwhile, Boeing struggled to deliver just 348 aircraft in 2024, hampered by labour strikes, safety concerns, and defense contract overruns.

Airbus CEO Guillaume Faury highlighted the company’s strong order intake, with a book-to-bill ratio well above 1, despite net orders dropping from 2,094 in 2023 to 826 in 2024.

Space Business Woes and Job Cuts

Airbus took a €900 million charge in June following a review of its space business, slashing first-half earnings to €825 million. This restructuring led to over 2,000 job cuts as demand for telecommunications satellites declined. However, its Defense and Space division posted a record €16.7 billion in sales, bolstered by Spain’s order of 25 Eurofighter jets.

Airbus targets higher market share

Boeing’s production setbacks are tilting the industry balance. Airbus’s market share in medium- and long-range commercial aircraft is projected to rise to 58% by 2030, while Boeing’s share may drop to 39%, with China’s Comac gaining 3%, according to Roland Berger consultancy. The outlook remains positive, with Airbus targeting an 820-plane delivery goal for 2025—up 7%—assuming no major disruptions in global trade, air traffic, or supply chains.

Supply chain headwinds

Boeing’s troubles have ripple effects on Airbus, as both companies rely on shared suppliers. Boeing’s $4.7 billion acquisition of Spirit AeroSystems in July forced Airbus to purchase the supplier’s operations related to its own aircraft. Despite these challenges, Airbus continues to expand its market position as Boeing works to resolve its crises.

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