Airbus SE Changes Commercial Aircraft Unit Leadership While Maintaining Production Targets
Airbus SE Changes Commercial Aircraft Unit Leadership While Maintaining Production Targets
Airbus SE announced that Lars Wagner, CEO of MTU Aero Engines AG, will lead the commercial aircraft division. Wagner will assume the role in early 2026, replacing Christian Scherer, a 40-year Airbus veteran. The company also stated that the board will propose the renewal of CEO Guillaume Faury's term.
Despite the leadership change, Airbus is maintaining its target of delivering approximately 770 aircraft this year, even as supply chain disruptions affect production plans. Having delivered 497 commercial jets in the first nine months, the company's commitment to this goal demonstrates confidence in the future and defies analyst expectations that 2024 targets could be reduced.
CEO Guillaume Faury told Bloomberg TV, "We have quite a challenging end of year ahead of us." Following this statement, Airbus's US-listed shares rose 3.5 percent on October 30.
In announcing third-quarter financial results, Airbus reported adjusted earnings before interest and taxes of €1.41 billion. This figure exceeded the average analyst estimate compiled by Bloomberg of €1.21 billion. Revenue rose 5.4 percent to €15.7 billion.
Airlines' efforts to renew their fleets with more fuel-efficient jets have left Airbus struggling to keep pace with demand. Difficulties faced by suppliers in ramping up production after the pandemic have forced the company to delay its target of producing 75 A320 aircraft monthly until 2027.
Faury clarified that Scherer's replacement was driven by succession planning and was not a result of the struggle to increase production. "This absolutely does not reflect any indication that Christian has not been doing his job," he said.
Wagner's arrival will bring a leader with experience managing a critical portion of the supply chain. MTU holds a joint position in the geared turbofan jet engine produced by RTX Corp.'s Pratt & Whitney unit. This turbine is one of two engine options available on the A320neo jetliner family, Airbus's best-selling model.
Faury noted that engine supplies from RTX and rival CFM International Inc. continue to constrain A320neo family production, a situation that will persist for months. Supplies from CFM are expected to improve in the second half of 2025.
He also stated that plans to increase A350 wide-body jet production next year will be "challenging" due to slowed assembly lines for components produced by Spirit AeroSystems Holdings Inc. as well as interior and seating installations.
Airbus reiterated its expectation that adjusted earnings before interest and taxes this year will be €5.5 billion. It noted that free cash flow before customer financing will be approximately €3.5 billion.
Key Points:
Airbus SE will bring Lars Wagner to lead the commercial aircraft division.
The company is maintaining its target of delivering approximately 770 aircraft in 2023.
Third-quarter adjusted earnings exceeded analyst estimates.
Supply chain issues continue to affect production.
A320neo and A350 production increase plans are becoming more challenging due to supply constraints.
CEO Guillaume Faury's term will be renewed.
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