Toulouse: European aircraft maker Airbus reported a rise in net profits for 2024, driven by an increase in plane deliveries and a strategic focus on further accelerating them.
According to Bangladesh Sangbad Sangstha, the company’s net profit grew by 12 percent, reaching 4.2 billion euros ($4.4 billion), despite a significant writedown in the value of its space business earlier in the year.
Aircraft deliveries increased by 4.2 percent to 766 units, which contributed to a six percent rise in revenues, totaling 69.2 billion euros. This metric is crucial as airlines typically pay for aircraft upon receipt. Both Airbus and its competitor Boeing, along with their suppliers, have faced challenges in scaling production back up after the Covid-19 pandemic, which severely impacted international air travel and necessitated staff and output reductions.
Despite a decline in net orders from the previous year-from 2,094 to 826-the company highlighted that orders still exceeded deliveries. “We achieved strong order intake across all businesses in 2024, with a book-to-bill well above 1, confirming the solid demand for our products and services,” stated chief executive Guillaume Faury. He also emphasized the company’s success in meeting its 2024 guidance amid a challenging year and highlighted the transformation of its space business.
In June, Airbus announced a 900-million-euro charge against first-half earnings following a comprehensive review of its space division, which reduced first-half earnings to 825 million euros. This led to more than 2,000 job cuts due to declining demand for telecommunications satellites. However, the Defense and Space division achieved record sales of 16.7 billion euros in 2024, partly due to Spain’s order for an additional 25 Eurofighter aircraft.
Looking ahead, Airbus aims for a seven percent increase in deliveries for 2025, targeting 820 aircraft. This goal is contingent upon stable conditions in global trade, the world economy, air traffic, the supply chain, and the company’s internal operations. The forecast does not consider any potential tariffs on its activities.