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Airbus cuts key targets, takes big hit on space unit

STORY: Airbus says it’s facing up to some tougher times ahead.

The company has cut key production targets for its jetliners, and taken a big charge on its troubled space business.

Boss Guillaume Faury says the firm is “facing headwinds right now; we have to bite the bullet”.

Airbus has cut its closely watched forecast for airliner deliveries to around 770 this year - down from about 800.

Industry players had long been skeptical that it could hit the original goal.

The world’s largest maker of airliners has been hit by output delays caused by parts shortages.

It says the supply of engines for its best-selling A320 jets has deteriorated “significantly” in recent months.

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Plans to ramp up production of the planes to record levels are being put back as a result.

Faury said engine makers would have to “face the consequences” of delays, hinting they could face penalties.

That could hit firms including Pratt & Whitney, and CFM - co-owned by GE Aerospace and France’s Safran.

Airbus has also taken a charge of about $965 million over its troubled space unit.

The company has cut its financial targets for the year as a result of all the problems.

It now expects operating income of about $5.9 billion, a billion or more down on previous targets.

Shares in the firm plunged 9% in early trade Tuesday following the glum outlook.