Airbus delivers 142 commercial aircraft in Q1, 2024
Published: 06:04 AM,Apr 27,2024 | EDITED : 11:04 AM,Apr 27,2024
The logo of Airbus is pictured outside the Airbus facility in Saint-Nazaire, France,
Amsterdam – Airbus SE reported consolidated financial results for its First Quarter (Q1) ended on March 31, 2024.
“We delivered first quarter 2024 results against the backdrop of an operating environment that shows no sign of improvement. Geopolitical and supply chain tensions continue. In that context, we delivered 142 commercial aircraft,” said Airbus CEO Guillaume Faury. “We started 2024 with a 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 the investments in our production system while relying on our core pillars of safety, quality, integrity, compliance, and security.”
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 € 2.0 billion (Q1 2023: € 2.5 billion).
Consolidated revenues increased 9 percent year-on-year to € 12.8 billion (Q1 2023: € 11.8 billion). A total of 142 commercial aircraft were delivered (Q1 2023: 127 aircraft), comprising 12 A220s, 116 A320 Family, 7 A330s and 7 A350s. Revenues generated by Airbus’ commercial aircraft activities increased 13 percent, mainly reflecting the higher number of deliveries.
Airbus Helicopters deliveries totaled 50 units (Q1 2023: 71 units) while its revenues decreased 9 percent, reflecting the lower volume of deliveries, partially offset by services. Revenues at Airbus Defence and Space increased by 4 percent mainly driven by the Air Power business, partly offset by a less favorable phasing in Space Systems. One A400M military airlifter was delivered in the quarter.
Consolidated 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 (Q1 2023: € 773 million). 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.
EBIT Adjusted related to Airbus’ commercial aircraft activities decreased to € 507 million (Q1 2023: € 580 million), 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 a rate 4 for the A330 in 2024.
Airbus Helicopters’ EBIT Adjusted decreased to € 71 million (Q1 2023: € 156 million), from a particularly strong first quarter in 2023 and reflecting the lower deliveries.
EBIT Adjusted at Airbus Defence and Space decreased to € -9 million (Q1 2023: € 36 million), 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.
On the A400M program, development activities continue toward achieving the revised capability roadmap. Retrofit activities are progressing in close alignment with the customer. No net material impact was recognized in the first quarter of 2024. Risks remain on the qualification of technical capabilities and associated costs, on aircraft operational reliability, on cost reductions, and on securing overall volume as per the revised baseline.
Outlook
The guidance issued in February 2024 remains unchanged.
As the basis for its 2024 guidance, the Company assumes no additional disruptions to the world economy, air traffic, the supply chain, the Company’s internal operations, and its ability to deliver products and services.
The Company’s 2024 guidance is before M&A.
On that basis, the Company targets to achieve in 2024:
Around 800 commercial aircraft deliveries;
EBIT Adjusted between € 6.5 billion and € 7.0 billion;
Free Cash Flow before Customer Financing of around € 4.0 billion.
“We delivered first quarter 2024 results against the backdrop of an operating environment that shows no sign of improvement. Geopolitical and supply chain tensions continue. In that context, we delivered 142 commercial aircraft,” said Airbus CEO Guillaume Faury. “We started 2024 with a 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 the investments in our production system while relying on our core pillars of safety, quality, integrity, compliance, and security.”
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 € 2.0 billion (Q1 2023: € 2.5 billion).
Consolidated revenues increased 9 percent year-on-year to € 12.8 billion (Q1 2023: € 11.8 billion). A total of 142 commercial aircraft were delivered (Q1 2023: 127 aircraft), comprising 12 A220s, 116 A320 Family, 7 A330s and 7 A350s. Revenues generated by Airbus’ commercial aircraft activities increased 13 percent, mainly reflecting the higher number of deliveries.
Airbus Helicopters deliveries totaled 50 units (Q1 2023: 71 units) while its revenues decreased 9 percent, reflecting the lower volume of deliveries, partially offset by services. Revenues at Airbus Defence and Space increased by 4 percent mainly driven by the Air Power business, partly offset by a less favorable phasing in Space Systems. One A400M military airlifter was delivered in the quarter.
Consolidated 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 (Q1 2023: € 773 million). 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.
EBIT Adjusted related to Airbus’ commercial aircraft activities decreased to € 507 million (Q1 2023: € 580 million), 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 a rate 4 for the A330 in 2024.
Airbus Helicopters’ EBIT Adjusted decreased to € 71 million (Q1 2023: € 156 million), from a particularly strong first quarter in 2023 and reflecting the lower deliveries.
EBIT Adjusted at Airbus Defence and Space decreased to € -9 million (Q1 2023: € 36 million), 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.
On the A400M program, development activities continue toward achieving the revised capability roadmap. Retrofit activities are progressing in close alignment with the customer. No net material impact was recognized in the first quarter of 2024. Risks remain on the qualification of technical capabilities and associated costs, on aircraft operational reliability, on cost reductions, and on securing overall volume as per the revised baseline.
Outlook
The guidance issued in February 2024 remains unchanged.
As the basis for its 2024 guidance, the Company assumes no additional disruptions to the world economy, air traffic, the supply chain, the Company’s internal operations, and its ability to deliver products and services.
The Company’s 2024 guidance is before M&A.
On that basis, the Company targets to achieve in 2024:
Around 800 commercial aircraft deliveries;
EBIT Adjusted between € 6.5 billion and € 7.0 billion;
Free Cash Flow before Customer Financing of around € 4.0 billion.