Airbus SE reported a cash outflow in the first half as supply-chain challenges with engines for its best-selling A320neo jet delayed deliveries of new aircraft. Airbus CEO Guillaume Faury speaks with Romaine Bostick on "The Close."

Airbus reported delivering 306 aircraft in the first half of the year, with an additional 60 completed planes awaiting engines. The company's CEO attributed recent negative cash flow primarily to these delayed engine deliveries, which he expects to be resolved as suppliers recover from earlier industrial challenges and strikes.

Despite some restructuring of orders and lower demand from certain US customers, Airbus continues to experience robust global demand, maintaining the largest backlog in the industry. The CEO emphasized that most customers are requesting accelerated deliveries, and Airbus is ramping up production, particularly of the A320 family, aiming for a record monthly output by 2027. The company also welcomed a recent US-EU agreement to return to zero tariffs on civil aviation, which is expected to support normal operations once implemented.

Airbus mostly on track with 1H expectations, CEO says

still some concerns here about the number of deliveries in the most recent half. But more importantly the cash burn that we saw in that period as well. What assurances can you give investors about some moderation in that cash burn and some acceleration with regards to deliveries. What we see in the first half of the year is a number of delivery that is at 306. But we have also to have in mind that we have 60 aircraft sitting on the ground fully finished. But with engines missing we call them gliders. So if you look at what we've been able to produce including the gliders actually we are mostly on track with what we expected to do in the first half. So we count on engine makers namely CFM and to a smaller extent parts to recover on their engine deliveries to Airbus. So we can be back on track with a number of deliveries. So actually the negative free cash flow that we have recorded for the first half reflects mainly those missing deliveries and engine missing leading to aircraft on the ground. Although we have confirmed our guidance because we believe we will get those engines and we'll be back to where we need to be. Are the delays in getting those engines. Is that related to labor issues or is that more for parts and just some hold ups in the supply chain. Well that's more of the latter. Actually these are more short term issues that were generated in the first half of the year. When we look at the CFM situation G.E. faced industrial difficulties in the beginning of the year. They delivered their cause the hot section of the engines late to the other partner which is Saffron. And then Saffron faced a strike a seven week strike that impacted very significantly the ability to deliver on time. We are recovering now. So it's really a timing issue facing industrial challenges. And we believe they are in the situation now to deliver us back to normality till the end of this year. So that's the outlook for the next part of the year. With regards to the backlog of orders I am curious as to what adjustments if any you have had to make in light of some of the lower demand coming out of the US. The restructuring of the order book over at Waze as well as a few other customers that at least for right now might be on the sidelines. Actually what we face at Airbus is a very high level of demand overall. We have by far more demand than the ability to supply. We have a very strong backlog the biggest backlog in the industry. And these backlog keeps going up keeps growing. So we are not looking at it as a as a risk for our business moving forward. The overall global demand keeps growing and we are doing our very best to ramp up to serve that demand. How linear is that. And more importantly Guillaume there's a big question here about whether some of your customers are actually asking for an acceleration in delivery of their order book. Well actually most of them if not all of them are asking for an acceleration in the delivery. As I said earlier we are held back by the ability of engines. We are humping up on the A320 family which is the bulk of what we do up to a production rate a monthly production rate of 75 aircraft a month by 2027. That will be the highest ever achieved for a commercial aircraft. So that's the challenge we have in front of us. It's a good challenge because it reflects the strong demand we have for our products. You gave guidance and for investors here that explicitly did not take into account the framework of a deal between the United States and the European Union. When do you think you'll have a little bit more confidence of factoring in that trade deal into your guidance. That's an important question to us. We had the news over the weekend of the agreement and the fact that civil aviation will be back to the so-called 0 4 0 meaning no tariffs. That's something we have enjoyed since 1979 and drives the success of this industry. We need something papered out and implemented. We need an agreement in force as soon as possible to be able to be back to normal operations. That's something important to us. But we welcome the agreement. We hope it's going to be in force as soon as possible and ideally more a matter of weeks and a matter of months.

U.S. President Donald Trump said on Monday that Kyiv and Moscow will both have to cede land to end the war in Ukraine and talks with Russian President Vladimir Putin this week will instantly show whether the Kremlin leader is willing to make a deal.

Washington

Ukraine Invasion

Trump says both sides in Ukraine war will need to cede territory

A prominent Al Jazeera journalist, who had previously been threatened by Israel, was killed along with four colleagues and another journalist in an Israeli airstrike in an attack condemned by journalists and rights groups.

Jerusalem

Middle East Conflict

Israeli strike kills Al Jazeera journalists in Gaza

At last one person is dead, dozens are injured and two people are unaccounted for after an explosion at the U.S. Steel Clairton plant in Pennsylvania on Monday.

Clairton

At least 1 dead, dozens injured in U.S. Steel plant explosion

President Donald Trump has placed the Metropolitan Police Department under federal control and announced he's activating the National Guard to combat crime in Washington, D.C.

Trump deploying National Guard to Washington, D.C.

Ukrainian President Volodymyr Zelenskyy is thanking European leaders for backing his push to join this week's Trump-Putin summit in Alaska, insisting an end to the war must be fair.

Alaska

Trump and Putin set to meet on Friday without Zelenskyy

U.S. President Donald Trump and Russian President Vladimir Putin are scheduled to meet in Alaska on Friday to discuss ending the war in Ukraine. Kyiv and its allies fear being sidelined and worry any deal could reward Moscow’s occupation of Ukrainian territory.

Kyiv

Ukraine fights for a seat at the table ahead of Trump-Putin summit

Israeli Prime Minister Benjamin Netanyahu is defending his decision to keep fighting in Gaza, despite protests at home and abroad. Debora Patta has the latest.

Tel Aviv-Yafo

Netanyahu defends plan to expand war in Gaza

Ukrainian President Volodymyr Zelenskyy is thanking European leaders for backing his push to join this week's Trump-Putin summit in Alaska, insisting an end to the war must be fair. Willie James Inman has more from the White House.

Anchorage

Countdown begins to Trump-Putin meeting, without Zelenskyy

Violent weather hit several Midwest states over the weekend, with high winds being blamed for the death of at least one person in Nebraska and flash flooding prompting a state of emergency in Milwaukee County, Wisconsin.

Milwaukee

Milwaukee inundated with floodwaters, one dead in Nebraska

Thirty-seven major wildfires are currently burning across nine states in the western United States. Firefighters have made significant progress on the Canyon Fire in California, achieving 62% containment and allowing over 4,000 residents to return home, with minimal property loss reported.

Major fires continue to burn across western U.S.

President Donald Trump's envoy met with the Qatari prime minister on Saturday in Spain to discuss possible deals to end the Israel-Hamas war in Gaza, as Israel's military plans to expand into Gaza City. Meanwhile, families of Israeli hostages and Palestinians alike are pleading for peace.

Families of Israeli hostages, Palestinians plead for ceasefire

Renewed anti-government protests have taken place in Israel, where relatives and supporters of Israeli hostages held by Hamas demanded their release and an end to the brutal war Israel has been waging in Gaza.

Israeli anti-government protesters take to the streets in Tel Aviv

Ukraine's President Volodymyr Zelenskiy said that Kyiv "values and fully supports" a joint statement by European leaders that welcomed U.S. President Donald Trump's efforts to try to end the war, while emphasizing the need to pressure Russia and provide security guarantees for Kyiv.

Europe stresses need to protect Ukraine ahead of Trump-Putin meet

Ukrainian President Zelenskyy has firmly rejected Russia’s proposal requiring land concessions to end the war. Ukrainian and European officials have submitted a counterproposal to Washington.

Ukraine, Europe counter Russian ceasefire proposal ahead of US talks

There have been more protests, and counter protests, in several British towns and cities, outside of hotels used to accommodate asylum seekers. Some far-right protesters called for one of the hotels to stop housing migrants.

Bournemouth

UK: Anti-immigration & anti-racism protesters face off

A man who opened fire on the U.S. Centers for Disease Control and Prevention headquarters in Atlanta, firing into the complex from a pharmacy and killing a police officer, blamed the COVID-19 vaccine for making him depressed and suicidal, according to reports.

Atlanta

Vaccine conspiracy could be behind Atlanta shooting

The Gifford Fire burning through the rugged backcountry of California's Central Coast is now the state's largest wildfire of the year. It has reached so-called "mega-fire" status and is one of 38 large fires burning across nine states.

San Luis Obispo

Largest California wildfire of 2025 reaches "mega fire" status

President Trump is preparing to take another swing at a deal with President Putin during a high-stakes summit next Friday in Anchorage, Alaska. Ukraine President Volodymyr Zelenskyy says the country will never give up land, even if it means an end to the war.

Trump: Ukraine must cede land for ceasefire; Zelenskyy refuses

The United Nations Security Council is set to hold a rare Sunday meeting to discuss Israel's plan to intensify its 22-month war with Hamas by taking control of Gaza City. CBS News' Debora Patta reports on the conflict and the mounting humanitarian crisis.

Netanyahu's plan to occupy Gaza comes under fire

At least 200 protesters have been arrested at a rally showing solidarity for Palestinians in Gaza, outside the Parliament in London. Crowds are also demonstrating against a ban on the Palestine Action group, after it was designated as a terrorist organisation.

London

London:  Hundreds arrested during Palestine action protest

After almost four decades of a bloody conflict that until recently had no end in sight, Azerbaijan and Armenia signed a peace agreement in the presence of the US President Donald Trump. Notably absent in this historic moment is Russia, which no longer plays a central role in the South Caucasus.

Azerbaijan and Armenia sign historic agreement

Montana's governor said that the dayslong manhunt for the suspect in a bar shooting has ended. 45-year-old Michael Brown was taken into custody on Friday.

Anaconda

Montana bar shooting suspect captured after weeklong manhunt

President Trump announced Friday that he will hold a one-on-one meeting with Russian President Vladimir Putin on Aug. 15 in Alaska. The summit comes as Russia has been pushing to keep all the Ukrainian territory it gained from its invasion. Nancy Cordes and Margaret Brennan have the latest.

Trump, Putin to hold meeting in Alaska next week

The U.S. Department of Justice issued subpoenas in its investigation into New York Attorney General Letitia James. CBS News' Jake Rosen reports.

New York

Trump's DOJ subpoenas New York AG Letitia James

Vladimir Putin and Donald Trump will meet in the coming days, the Kremlin said on Thursday (August 7), as the U.S. president seeks a breakthrough to end the Ukraine war after voicing mounting frustration with his Russian counterpart and threatening him with new sanctions.

Moscow

Kremlin says Trump, Putin to meet soon; Ukraine seeks role for Europe

U.S. President Donald Trump's rushed deadline for Russia to strike a ceasefire deal or face more sanctions has arrived without much movement from Russian President Vladimir Putin.

Trump deadline for Russia to reach ceasefire arrives

Protesters in Israel are voicing their concerns about a plan approved by Prime Minister Benjamin Netanyahu's Security Cabinet to take over Gaza City. CBS News' Debora Patta has more.

Israel's security cabinet approves plan to take over Gaza City

Israeli Prime Minister Benjamin Netanyahu says Israel intends to take full military control of Gaza and push a new offensive, despite mounting international criticism over the war’s human toll and growing hunger crisis.

Breakdown