Amazon plans to deploy Project Kuiper satellite in Q4 and conduct consumer testing in 2025.
TakeAway Points:
- Amazon plans to launch Project Kuiper satellite in Q4 2023, with customer testing taking place in 2025 and commercial service commencing later that year.
- Airbus SE has been notifying airlines that some of their aircraft deliveries scheduled for 2025 and 2026 may be delayed.
- The business warns of weaker profitability and cash flow for the year, and Airbus shares slumped 3.7% on delayed news, amounting to a 6.5% YTD decline.
Amazon delays Satellite launch
Amazon.com Inc. has announced that it plans to launch its first batch of internet-from-space satellites in the fourth quarter of this year. This marks a shift from its earlier timeline, which anticipated launches in the first half of the year.
The company aims to begin customer tests of its Project Kuiper network in 2025, according to Steve Metayer, Amazon’s production operations chief, who spoke at the ribbon-cutting event for Amazon’s new satellite production facility in suburban Seattle. Commercial service is expected to follow later in 2025, once Amazon has hundreds of satellites in orbit.
Amazon’s Project Kuiper aims to provide broadband internet through a constellation of more than 3,000 satellites, positioning itself as a competitor to Elon Musk’s Starlink network. The company launched two prototype satellites in October, which are now being retired as Amazon ramps up manufacturing at its Kirkland, Washington, factory. This facility is expected to produce up to five satellites a day.
Airbus Sees Delivery Delays
Airbus SE has been notifying airlines that some of their aircraft deliveries scheduled for 2025 and 2026 may be delayed. This development suggests that supply-chain issues at the world’s largest planemaker could extend beyond the current year.
According to report, planes could be delayed by months from their original delivery dates. These sources requested anonymity due to the confidential nature of the discussions.
The European planemaker has been struggling with shortages of components ranging from engines to structural parts to cabin interiors. This week, Airbus announced that it would not meet its previously predicted number of aircraft deliveries for 2024. The company also delayed its plan to increase monthly build rates to 75 units on the A320 model by a year, which means fewer of its most popular model will be available for customers looking to upgrade.
“Airbus is facing, at the moment, persistent and specific supply-chain issues,” said Chief Executive Officer Guillaume Faury during a conference call. He added that the operating environment “has actually degraded recently against the backdrop of geopolitical tensions and even more on specific supply chain challenges.”
Effect of Finances on Airbus
Shares in Airbus fell as much as 3.7% in Paris following the news of the delays, contributing to a 6.5% decline in the company’s stock this year. The company is largely sold out of its A320 family aircraft until the end of the decade, and its A330 and A350 widebody models are also in high demand, making them harder to come by in the next few years. This surge in demand is driven by a boom in travel, prompting airlines to purchase jets in record numbers.
The new delays extending into 2026 go beyond previously reported difficulties. Faury has cautioned that supply-chain constraints will likely remain in place for the next 2-3 years. Alongside the revision in deliveries and production rates, Airbus also warned that it would record lower earnings and cash flow this year than previously guided, partly due to charges at its space unit. This announcement led to a stock drop of as much as 10%.
An Airbus spokesman declined to comment on the latest possible delays, citing confidential agreements with its customers. However, customers and suppliers are aware of the planemaker’s new guidance issued this week.
