Europe’s Airbus raised its forecasts for full-year deliveries and earnings today after announcing better-than-expected first half results.
The world’s largest maker of planes announced that it was expecting to deliver 600 aircraft this year, up from the 566 that they managed last year.
Reuters reported yesterday that this was in part due to the financial structures and compromise deals that have emerged between Airbus and carriers in the past 18 months.
Most analysts had expected this to contribute to the strong first-half results.
Airbus doubled its forecasts for yearly operating income to €4bn while estimating €2bn in free cash flow before mergers and acquisitions.
In the year’s first-half, Airbus delivered 297 aircraft after a surge in June. That total puts it on course to exceed full-year targets owing to its pattern of speeding deliveries later in the year.
Aerospace companies rely on deliveries because they mark the point that the manufacturer can recoup some of the enormous outlay that has been spent on the development costs.
Rival manufacturer Boeing’s woes have seen Airbus’s best-selling A231neo receive increased demand as the latter’s 737 MAX remains grounded.
Airbus has been approached for comment.