Airbus Stock: Soaring Profits, Grounded Jets

Airbus reported a tripled quarterly profit of €732 million, surpassing analyst expectations, but faces an ironic crisis: 60 completed jets sit idle without engines, dubbed "gliders" by executives. While the company benefits from strong demand amid rival Boeing’s struggles, engine shortages—caused by strikes at one supplier and defective materials at another—threaten its ambitious year-end target of 820 deliveries. Despite delivering only 306 aircraft in the first half, Airbus plans to ramp up A320neo production to 75 monthly by 2027, banking on a resolution to supply chain woes.

Market Skepticism Amid Cash Flow Concerns

Investors remained wary despite rosy earnings, with shares dipping 2% post-announcement. Analysts praised the €1.59 billion operating profit (8% above forecasts) but noted cash flow pressures, with €1.6 billion spent in H1 to stockpile undeliverable jets. A U.S.-EU trade deal sparing Airbus from tariffs offered relief, yet engine delays cast doubt on year-end goals. The backlog, stretching into the next decade, underscores demand—if suppliers can keep pace.