Airbus first-quarter net profit plunges 62% on decline in deliveries

The European plane maker’s net income in the three-month period fell to $516 million

Airbus delivered a total of 127 commercial aircraft during the first quarter of 2022. AFP

Airbus said its first-quarter profit plunged 62 per cent as deliveries fell and its business was affected by continuing supply chain issues.

The European plane maker’s net income in the three months to the end of March declined to €466 million ($516 million) from €1.29 billion in the same period last year, it said in a statement on Thursday.

“We continue to face an adverse operating environment that includes in particular persistent tensions in the supply chain," said chief executive Guillaume Faury.

"Our 2023 guidance is unchanged with commercial aircraft deliveries expected to be backloaded. We remain focused on delivering the commercial aircraft ramp-up and longer-term transformation."

Revenue fell 2 per cent to €11.8 billion in the quarter from the same period a year earlier.

A total of 127 commercial aircraft were delivered during the first quarter — 106 A320 Family planes, 10 A220s, six A330s and five A350s, Airbus said.

The Toulouse-based company aims to deliver about 720 commercial aircraft in 2023, it said.

Airbus said its gross commercial orders stood at 156, down more than 38 per cent compared with the same period last year, with net orders of 142 aircraft after cancellations. The order backlog amounted to 7,023 commercial aircraft as of March 31.

Airbus, which in 2022 retained its crown as the world's biggest plane maker for the fourth consecutive year, said in January that it planned to hire 13,000 new workers this year.

Technology roles are to be a key focus of the recruitment drive.

Staff shortages and supply chain delays have hindered the company's efforts to boost production to meet airline demand for new jets with better fuel efficiency.

Meanwhile, Airbus Helicopters registered 39 net orders, about 30 per cent less than in the first quarter of 2022.

The division’s revenue rose 26 per cent "mainly reflecting deliveries and a solid performance across programmes, favourable mix effects, as well as a good start to the year in services", Airbus said.

“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 benefitted from a good performance in helicopters,” Mr Faury said.

Revenue at Airbus defence and space divisions decreased 6 per cent during the first quarter, mainly driven by lower volume in military air systems and space systems, even as the division's order intake by value dropped by about 22 per cent to €2.5 billion.

The increase in the A220 programme is continuing towards a monthly production rate of 14 aircraft by the middle of the decade, Airbus said.

On the A320 Family programme, the company continues to increase towards a monthly production rate of 65 aircraft by the end of 2024. The recently announced decision to add a second final assembly line in Tianjin, China, will increase global industrial capacity to 10 final assembly lines for the A320 Family, supporting Airbus's plans to "produce 75 aircraft per month in 2026", the company said.

The increase in the A220 programme is continuing towards a monthly production rate of 14 aircraft by the middle of the decade, Airbus said. Bloomberg