The European multinational aircraft company Airbus SE reported a 9% increase in sales for the first quarter of this year, despite a number of obstacles. In its statement covering financial results for the first quarter (Q1) ended 31 March 2024, Airbus stated that geopolitical and supply chain tensions continue.
“We delivered first-quarter 2024 results against the backdrop of an operating environment that shows no sign of improvement. In that context, we delivered 142 commercial aircraft,” said Airbus CEO Guillaume Faury. “We started 2024 with solid order intake across our businesses. The strong momentum on widebody aircraft underpins our decision to increase the production rate for the A350 to 12 aircraft a month in 2028. Our ramp-up plans are continuing, supported by investments in our production system while relying on our core pillars of safety, quality, integrity, compliance, and security.”
According to the report sent to Capital, gross commercial aircraft orders totaled 170 (Q1 2023: 156 aircraft) with the same number of net orders due to no cancellations (Q1 2023 net orders: 142 aircraft). The order backlog amounted to 8,626 commercial aircraft at the end of March 2024. Airbus Helicopters registered 63 net orders (Q1 2023: 39 units), mainly in the light and medium segments. Airbus Defence and Space’s order intake by value was 2 billion euros (Q1 2023: 2.5 billion euros).
Consolidated revenues increased 9 percent year-on-year to 12.8 billion euros from 11.8 billion euros in Q1 2023. A total of 142 commercial aircraft were delivered, an increase from 127 aircraft in the same period last year. According to the quarterly report, revenues generated by Airbus’ commercial aircraft activities increased 13 percent, mainly reflecting the higher number of deliveries. Airbus Helicopters’ deliveries totaled 50 units, a decrease compared with the preceding year’s same period of 71 units.
“Its revenues decreased 9 percent, reflecting the lower volume of deliveries, partially offset by services,” it added. According to the report, revenues at Airbus Defence and Space increased 4 percent mainly driven by the Air Power business, partly offset by a less favorable phasing in Space Systems.
It stated that consolidated earnings before interest and taxes (EBIT) Adjusted – an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programs, restructuring, or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses – was 577 million euros (Q1 2023: 773 million euros).
“It includes the planned impact linked to the increased Airbus Employee Share Ownership Plan, which saw record participation among employees, and resulted in a year-on-year expense increase of slightly above 0.1 billion euros,” it added. EBIT Adjusted related to Airbus’ commercial aircraft activities decreased to 507 million euros from 580 million euros of last year’s same period, “with the positive impact from higher deliveries being offset by a slightly less favorable hedge rate as well as investments for preparing the future.”
The A220 ramp-up continues towards a monthly production rate of 14 aircraft in 2026, with a focus on the program’s industrial maturity and financial performance. On the A320 Family program, the Company is making progress towards the rate of 75 aircraft per month in 2026. Entry-into-service of the A321XLR continues to be expected in Q3 2024. On widebody aircraft, the Company has decided to increase the production rate for the A350 to 12 aircraft a month in 2028 and continues to target rate 4 for the A330 in 2024.
Airbus Helicopters’ EBIT Adjusted decreased to 71 million euros from 156 million euros in Q1 2023, reflecting a particularly strong first quarter in 2023 and reflecting the lower deliveries. EBIT Adjusted at Airbus Defence and Space decreased to -9 million euros (Q1 2023: 36 million euros), mainly reflecting the lower volume and profitability of Space Systems, notably linked to the Estimates at Completion updates performed in the second half of 2023.
