Focus remains on September By Investing.com

Investing.com — Airbus SE (EPA: ) reported a slight drop in August deliveries on Friday, with the company delivering 47 aircraft and taking 45 new orders.

August is a slower month for Airbus, reflecting seasonal trends such as European holidays.

For that reason, the month’s performance, in which deliveries represented just 6.1 percent of the company’s target of 770 planes for the fiscal year, is not entirely surprising, but slightly below the typical average of 6.7 percent, analysts at Read Research in a note.

Airbus recorded 45 first flights in August, down from both the monthly average of 5.8% and the year-to-date average of 60.5%.

“August is an abnormal European holiday month – September will be a better indicator of whether targets for the financial year are likely to be met,” analysts said.

With 447 deliveries so far, Airbus has achieved 58.1% of its annual target, slightly beating the recent average of 57.2%.

The backlog remains substantial at 8,564 aircraft, and year-to-date orders have matched deliveries, suggesting a healthy balance in the order and delivery pipeline.

However, several risks could affect the performance of Airbus stock and affect its ability to hit its target price. Changes in society’s attitude towards air travel, driven by the consequences of the COVID-19 pandemic, could influence long-term demand.

Uncertainty about aircraft deliveries in the near and medium term is another risk. In addition, increased demand for financing from suppliers could strain cash flows, particularly if credit markets tighten or support from export credit agencies is not provided.

Currency fluctuations, particularly an appreciation of the euro against the US dollar, could also impact profitability. The inherent complexity of the Airbus business adds another layer of uncertainty, making it difficult to accurately model and evaluate.

Citi analysts warn that if these risks materialize more than anticipated, they could prevent Airbus’ share price from reaching its projected target. Conversely, if these risks prove less impactful, there may be potential for the stock to outperform expectations.

The airline’s shares were down 1.2 percent at 6:50 a.m. (1050 GMT).