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By Tim Hepher
PARIS (Reuters) - The CEO of Europe's Airbus has told staff that the group ended 2024 in better shape than it feared when cutting profit targets last summer, while warning of increased risks to its business from a worsening international environment.
Referring to group-wide performance, Guillaume Faury said in a New Year memo seen by Reuters: "From an operational point of view, we finished the year in a better state than we feared when we changed our guidance to the financial markets" in July.
An Airbus spokesperson said it never comments on internal correspondence.
Airbus this month reported 766 jet deliveries, just shy of a targeted headline figure of "around 770", while claiming victory due to a margin for manoeuvre in the language of its forecast. It remained ahead of rival Boeing for a sixth year.
Faury said activity would once again accelerate over the course of the year and insisted Airbus must improve quality and delivery timing. Industry sources say it is short of engines this month after racing towards the finish line in 2024.
Faury said Airbus Defence and Space and Airbus Helicopters had an "excellent commercial performance" in 2024.
But he called for vital progress in defence activities of both divisions and hinted that recent consolidation moves in space could seep into defence. He narrowed earlier definitions of possible strategic options to include new partnerships.
"We are also exploring a potential consolidation of our activities and possible new partnerships, particularly in the space business where we're suffering the most," he wrote.
In December, Reuters reported that Airbus, Thales and Leonardo were exploring a satellite partnership modelled on MBDA, the world's second-largest missile maker which is controlled by a trio of groups including Airbus and Leonardo.
A study carried out by Syndex, a consultancy that advises unions, said the MBDA model is most likely but raised concerns about the impact on jobs, according to a copy seen by Reuters. Airbus has already announced 2,000 job cuts in Defence and Space.
'DETERIORATING INTERNATIONAL ENVIRONMENT'
In the letter, sent to some 150,000 staff shortly before U.S. President Donald Trump was sworn in on Monday, Faury said Airbus faced a "worrying backdrop" and must be ready to respond rapidly to events but did not single out any specific situation.
"At the outset of 2025, we can all see that the international environment is deteriorating and growing in complexity. This is increasing the risks weighing on our activities," Faury said.