...June 5, 2024 With an order backlog of more than 8,500 aircraft, Airbus SE is sold out for the next decade. Resilience in air travel demand, combined with technological advancements in fuel efficiency and fleet modernization efforts from airlines support Airbus' orders backlog. While the demand for commercial aircraft offers solid revenue growth prospects, Airbus' cash conversion relies on execution and management of a complex supply chain of more than 2 million spare parts. To date, pockets of disruption persist and constrain Airbus' production rate ramp up efforts, leading the company to target about 800 deliveries in 2024, only 9% above 2023. As of April 2024, Airbus delivered 203 aircraft, suggesting that 2024 deliveries will be back-end loaded. Reinforced regulatory oversight and scrutiny on certification--following recent quality issues at competitor Boeing-- will likely add some hurdles to Airbus' ramp up ambitions as production remains under the regulator's spotlight. We assume Airbus...
