The Market Shouldn’t Clip Airbus’s Wings

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Heard on the Street: Airbus has delivered good results given that 2020 was the worst year in aviation history

On Thursday, the European plane maker’s shares dropped about 3% after Airbus announced that it expected to deliver at least 566 commercial aircraft this year—matching 2020 levels. This means that free cash flow for the year would roughly break even.

Delivering 566 jets may not seem like a lot—that number was 863 in 2019—but it is close to heroic during a crisis that has grounded a third of the global airline fleet. Under such circumstances, there is little that carriers want to do less than spend cash to buy more planes.Agenda-setting analysis and commentary on the biggest corporate and market stories.In September, Airbus had only shipped out 341 aircraft, and was forced to put 135 newly built models in storage.

Aerospace experts often warn that these orders can be quickly canceled when downturns hit. Mr. Faury, though, has proven that

 

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