Fantastic stocks and where to find them

Turbulence in the Aviation Industry: Boeing in Trouble, Airbus Announces Layoffs

Stock SpotlightThursday, Oct 17, 2024 4:16 am ET

1min read

The global aviation industry is going through a turbulent time.

Boeing is grappling with frequent accidents and employee strikes, which have severely affected the company's operations. One might think this would benefit its competitor, Airbus. However, that's not the case.

Airbus plans to cut up to 2,500 jobs in its defence and space division by mid-2026, according to a statement released on Wednesday. Analysts believe most of the job losses will be managed through retirements or voluntary departures.

"In recent years, the defence and space sector, and our division in particular, have been impacted by a rapidly changing and challenging business environment. Disrupted supply chains, rapid advancements in warfare, and increased cost pressures due to budget constraints have all played a role," said Mike Schoellhorn, CEO of Airbus Defence and Space. The company did not specify which countries would see the job cuts, but they represent about 1.7% of its total workforce.

Airbus has faced €1.5 billion ($1.63 billion) in losses within its space systems division in recent quarters, primarily due to the high-tech OneSat project and delays and cost overruns in its defense sector.

Earlier this year, Airbus announced that supply chain issues had forced it to reduce the number of planes it expects to produce this year and next. The company now forecasts its adjusted earnings before interest and taxes to be around €5.5 billion for the year, down from an earlier estimate of €6.5 to €7 billion.

Comments

Add a public comment...

Post

Anonym0us_amongus

10/17

$BA We're targeting $158+ for today and have a scheduled earnings report next week. Fingers crossed for a positive outcome!

Corpulos

$BA dipped below $150 today

Throwaway420_69____

Why do you think $BA hires so many contractors? They will even resort to using scab labor.

TailungFu

Anyone else think there's back channel talks happening between $BA and the union?

EightBitMemory

$BA, you're familiar with this company.

PunchTornado

$BA initially, a single income could support a family. Later, a couple's combined earnings increased the family's standard of living. However, inflation diminished their capacity to maintain that level of living. Similarly, companies undergo this cycle. When BA launched, Washington State was relatively inexpensive. Currently, BA lacks any economical strategies to produce planes there. Notably, the engines are manufactured in Ohio, Indiana, and Oklahoma, which are significantly cheaper than Washington.

AdvantageNo3180

$BA Boeing plans to lay off new employees and fire them? What will that cost? Only for them to unionize after they hire them. BA has been in trouble for years because they don't like to play by the rules. Crash, doors fly off, space shuttle leaks helium...now a strike they created by doing their usual...cutting corners! But it hasn't been kind to investors!

Bothurin

$BA Alternatively, you can execute 10,000 trades annually and showcase only the 200 that 'Nail the bottom.' ;) $VRSK Or how about this? Instead of limiting yourself to 200 trades, why not aim for 10,000 trades per year and share your successes with the community? #stockmarket #trading #investing

istockusername

$BA Etihad Airways is in preliminary discussions with Boeing (BA) regarding a possible widebody-aircraft purchase. These talks are currently at a preliminary stage, indicating that they are still exploratory.

Alert-Reveal5217

$BA The author is missing the mark here! The Fed has been working to restrain employment growth for the past two years to keep inflation at bay, as the labor shortage has led to increased wages and extended work hours. Meanwhile, Boeing has been grappling with plane crashes and faulty door issues, and True Value has been experiencing challenges since the pre-pandemic era. Surprisingly, banks have been shuttering their brick-and-mortar locations amidst the pandemic, yet they are thriving. This suggests that MAGA animosity is still prevalent, as my bank account and the current economic trends indicate. Spending in the U.S. is robust, and the economy is showing no signs of slowing down. In fact, it feels like we're on the verge of a more "normal" economic phase, as things have been heating up recently.

LufaMaster

$BA Why is this so difficult? Give me 24 hours to talk to both sides, and I'll solve it for free. We need to get things moving again before they spiral out of control. We don't need everyone trying to fix this. Just put me in a room with John holden and Kelly Ortberg, and I'll have this resolved in 24 hours, for free, so we can move forward.

Antinetdotcom

$BA This is an absolute disaster!!!

OhShit__ItsDrTran

$BA has hit the nail on the head with this post. If you want to duplicate this kind of call, you'll need to chart your stocks.

No More Comment