Airbus Faces €300M Space Charges and Plans European Satellite Merger

The aerospace giant aims to stabilize its space business after €1.3B in 2024 charges, while exploring a potential partnership with Thales and Leonardo to enhance competitiveness.

Airbus reported an additional €300M charge in its space division for Q4 2024, bringing total 2024 space-related charges to €1.3B, primarily due to underestimated risks in satellite programs.
The company is in preliminary talks with Thales and Leonardo to merge their satellite businesses, aiming to achieve scale and compete globally against U.S. and Chinese firms.
Airbus CEO Guillaume Faury emphasized the need for European consolidation to remain competitive in the growing market for low Earth orbit satellite constellations.
Despite challenges in its space division, Airbus posted a 12% rise in net profit for 2024, driven by increased commercial aircraft deliveries and strong demand for its products.
Airbus plans to deliver 820 aircraft in 2025, a 7% increase, while addressing ongoing supply chain issues and potential risks from U.S. tariffs under President Trump's trade policies.