Airbus SE, one of the world’s leading aircraft manufacturers, announced its financial results for the first quarter of 2023.
The company reported strong demand for its products, particularly in the commercial aircraft segment, and delivered a total of 127 commercial aircraft during this period.
Guillaume Faury, Airbus Chief Executive Officer, expressed his satisfaction with the first-quarter performance, stating, “The first quarter confirmed strong demand for our products, particularly for commercial aircraft. We delivered 127 commercial aircraft, which is reflected in the Q1 financials. The quarter also benefited from a good performance in Helicopters.”
Faury also acknowledged the challenges posed by the adverse operating environment, including persistent tensions in the supply chain.
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Despite these challenges, Airbus maintained its guidance for 2023, with commercial aircraft deliveries expected to be backloaded.
The company remains focused on the ramp-up of commercial aircraft production and its long-term transformation.
During the first quarter, Airbus received gross commercial aircraft orders totaling 156, with net orders of 142 after cancellations.
The order backlog stood at an impressive 7,254 commercial aircraft at the end of March 2023. Airbus Helicopters registered 39 net orders, which were well spread across different programs. Airbus Defence and Space’s order intake by value was €2.5 billion.
In terms of financials, consolidated revenues slightly decreased to €11.8 billion compared to €12.0 billion in the same period last year. Airbus delivered 127 commercial aircraft, comprising 10 A220s, 106 A320 Family, 6 A330s, and 5 A350s.
Revenues generated by Airbus’ commercial aircraft activities decreased by 5 per cent year-on-year, primarily due to lower deliveries, partially offset by the strengthening of the US dollar.
On the other hand, Airbus Helicopters’ deliveries increased to 71 units, driven by the Light helicopter segment, resulting in a 26 per cent increase in revenues for the division. Revenues at Airbus Defence and Space decreased by 6 per cent.
The consolidated EBIT Adjusted, an alternative performance measure, decreased to €773 million, reflecting the underlying business margin.
EBIT Adjusted related to Airbus’ commercial aircraft activities decreased to €580 million, mainly due to lower deliveries and investments for future preparations.
Airbus provided an update on its production plans for various aircraft programs. The A220 and A320 Family programs are continuing their ramp-up, aiming for monthly production rates of 14 and 65 aircraft, respectively.
The recent decision to add a second Final Assembly Line in Tianjin will increase the global industrial capacity for the A320 Family.
The A321XLR is progressing well in its flight test program, with entry-into-service expected in Q2 2024.
Looking ahead, Airbus aims to achieve approximately 720 commercial aircraft deliveries in 2023. The company has set a target of €6.0 billion for EBIT Adjusted and €3.0 billion for Free Cash Flow before M&A and Customer Financing.
Despite the ongoing challenges in the industry, Airbus remains committed to meeting the demand for its aircraft and driving its long-term transformation. The company’s strong performance in the first quarter of 2023 is a testament to its resilience and ability to navigate a complex operating environment.