…488 commercial aircraft delivered
…12% revenue growth to €42.6bn
By Sade Williams
Airbus has reported a record consolidated financial results for the nine months ended 30 September 2023.
Despite global operational challenges, consolidated revenues, according to the company, increased 12 percent year-on-year to € 42.6 billion compared to € 38.1 billion realised same period in 2022.
Commenting on the development, Guillaume Faury, Airbus Chief Executive Officer said, “We continue to make progress on our operational plan in a global environment that has become increasingly complex. The nine-month earnings reflect higher commercial aircraft deliveries, the good performance in helicopters as well as charges linked to the reassessment of certain satellite development programmes.
“Demand for our commercial aircraft is very strong with a continuing recovery in the widebody market. We expect the supply chain to remain challenging as we progress on the production ramp-up. In that context, we maintain our guidance for the full year.”, he added.
According to the giant plane maker, gross commercial aircraft orders totalled 1,280 (9m 2022: 856 aircraft) with net orders of 1,241 aircraft after cancellations (9m 2022: 647 aircraft).
The order backlog amounted to 7,992 commercial aircraft at the end of September 2023. Airbus Helicopters registered 191 net orders (9m 2022: 246 units) which were well spread across programmes.
Airbus Defence and Space’s order intake by value was € 8.5 billion (9m 2022: € 8.0 billion), including the renewal of the in-service support contract for Germany’s A400M fleet.
A total of 488 commercial aircraft were delivered (9m 2022: 437(1)(2) aircraft), comprising 41 A220s, 391 A320 Family, 20 A330s and 36 A350s.
Revenues generated by Airbus’ commercial aircraft activities increased 18 percent, mainly reflecting the higher number of deliveries.
Airbus Helicopters’ deliveries increased slightly to 197 units compared to 9 months in 2022: 193 units, with revenues rising 3 percent, reflecting the overall performance across programmes and services.
Revenues at Airbus Defence and Space decreased 6 percent, mainly driven by a backloaded A400M delivery profile and updated estimates at Completion of certain satellite development programmes.
A total of 4 A400M military airlifters were delivered (9m 2022: 7 aircraft).
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 programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses was € 3,631 million (9m 2022: € 3,481 million).
EBIT adjusted related to Airbus’ commercial aircraft activities increased to € 3,216 million (9m 2022: € 2,875 million), reflecting the higher deliveries and a more favourable hedge rate, partially offset by investments for preparing the future. 9m 2022 included the non-recurring positive impact from retirement obligations partly offset by the impact resulting from international sanctions against Russia.
In first halt of 2023, (H1 2023), provisions were released to reflect further progress made on compliance-related topics.
It added that the ramp-up on the A220 programme is continuing towards a monthly production rate of 14 aircraft in 2026.
“Production on the A320 Family programme is progressing well towards the previously announced rate of 75 aircraft per month in 2026. The modernisation and digitalisation of the industrial system continues, as illustrated by the inauguration of the A321XLR equipment installation hangar in Hamburg. The A321XLR is progressing towards certification, with entry-into-service expected to take place in Q2 2024.”, it stated.
On widebody aircraft, the company has decided to increase the production rate for the A350 to 10 aircraft a month in 2026 and continues to target rate 4 for the A330 in 2024.
Airbus Helicopters’ EBIT adjusted increased to € 417 million (9m 2022: € 380 million), reflecting the overall performance across programmes and services. 9m 2022 also included net positive non-recurring elements.
EBIT adjusted at Airbus Defence and Space decreased to € -1 million (9m 2022: € 231 million). It included charges of € 0.4 billion related to updated Estimates at Completion of certain satellite development programmes, mostly recorded in the third quarter. 9m 2022 also included net positive non-recurring elements.
In order to cope with an evolving defence and security environment, the company said it has launched a transformation of its Defence and Space division.
This aims to adapt ways of working, focusing on rigorous programme execution and a rebalancing of risks and opportunities to reinforce end-to-end accountability and ownership in the business lines and improve competitiveness.
