Airbus forecasts higher A320 deliveries and announces special dividend as Boeing struggles with 737 Max 9 crisis

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Transport Reporter

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Airbus said it expects to deliver 800 of its best-selling narrowbody A320 jets this year amid struggles at rival Boeing.
Airbus said it expects to deliver 800 of its best-selling narrowbody A320 jets this year amid struggles at rival Boeing.

Airbus said it expects to deliver 800 of its best-selling narrowbody A320 jets this year, as its long-term rival Boeing struggles in crisis after a major incident with its 737 Max 9 aircraft last month.

The French planemaker’s forecast marks an increase of 65 from a 2023 total of 735.

Boeing has postponed its financial guidance for the coming year after a section of one of its iconic aircraft fell off during an Alaska Airlines flight in January, prompting a dramatic emergency landing.

Airbus’s bumper forecast came as it unveiled a special dividend for investors following a strong set of results.

The company’s order intake increased to €186.5bn (£159bn), up from €82.5bn (£70.6bn) in 2022. Revenues rose 11 per cent year-on-year to €65.4bn (£56bn after it delivered 571 of its A320 aircraft.

Adjusted earnings before interest and taxation (EBIT) related to the company’s commercial aircraft activities increased to €4.8bn (£4.1bn), up from €6.7bn (£5.7bn) last year, “reflecting the higher deliveries and a more favourable hedge rate.”

EBIT for the full year is expected to come in at between €6.5bn (£5.6bn) and €7.0bn (£6bn).

“In 2023 we recorded strong order intake across all our businesses and we delivered on our commitments. This was a significant achievement given the complexity of the operating environment,” said Guillaume Faury, Airbus Chief Executive Officer.

“We will continue to invest in our global industrial system while progressing on our transformation and decarbonisation journey. Our dividend proposals are a reflection of the strong 2023 financials, our growth prospects in 2024 and balance sheet strength.”

Shares rose 0.91 per cent following the announcement.