Airbus Delivers Strong Q1 2023 results despite persistent supply chain tensions
Airbus has released its financial results for the first quarter ending on March 31, 2023. According to CEO Guillaume Faury, the first quarter saw strong demand for Airbus products, especially in commercial aircraft. The company delivered a total of 127 commercial aircraft, which reflects positively on the financial results of the first quarter. Airbus Helicopters also saw a positive performance during this period.
Despite an adverse operating environment with persistent supply chain tensions, Faury stated that Airbus is maintaining its forecast for 2023, with a volume of deliveries concentrated in the last months of the year. The company is focused on achieving the goal of increasing the production of commercial aircraft and on carrying out the long-term transformation.
Gross orders for commercial aircraft amounted to 156 planes (1Q 2022: 253 planes), with net orders for 142 planes after cancellations (1Q 2022: 83 planes). The order backlog reached 7,254 commercial aircraft by March 31, 2023. Airbus Helicopters accounted for 39 net orders (1Q 2022: 56 units) well distributed among different programs. Airbus Defence and Space received orders worth 2.5 billion euros (1Q 2022: 3.2 billion euros).
Consolidated revenues slightly decreased to 11.8 billion euros (1Q 2022: 12 billion euros). Airbus delivered a total of 127 commercial aircraft (1Q 2022: 142(1) aircraft) comprising 10 A220 aircraft, 106 A320 family aircraft, 6 A330 aircraft, and 5 A350 aircraft.
Revenues generated by Airbus commercial aircraft activities decreased by 5% compared to the same period last year, reflecting lower deliveries, partially offset by the strengthening of the US dollar.
Deliveries of Airbus Helicopters increased to 71 units (1Q 2022: 39 units), mainly due to the light helicopter segment. The division's revenues increased by 26%, reflecting the volume of deliveries and the solid performance of all programs, the effects of a favorable mix, and a positive start to the year for services.
Airbus Defence and Space revenues decreased by 6%, mainly due to lower volumes in Military Air Systems and Space Systems. The company delivered one A400M transport aircraft during the first quarter of 2023. The adjusted consolidated earnings before interest and taxes (EBIT) net result - an alternative performance measure and key indicator that records the underlying business margin excluding expenses or benefits from provisions related to programs, restructuring, or exchange rate effects, as well as gains/losses resulting from the sale and acquisition of companies - decreased to 773 million euros (1Q 2022: 1.263 billion euros).
The increase in the production of the A220 program continues to advance towards a monthly rate of 14 aircraft by the mid-decade.
Regarding the A320 family program, the company is increasing production to achieve a monthly rate of 65 aircraft by the end of 2024. The recently announced decision to create a second final assembly line in Tianjin will increase global industrial capacity to 10 final assembly lines for the A320 family and support Airbus' plans to manufacture 75 aircraft per month by 2026.
The A321XLR flight test program is progressing, with entry into service planned for the second quarter of 2024. As announced, the company aims to achieve a monthly rate of 4 aircraft for the A330 in 2024 and 9 aircraft for the A350 by the end of 2025.
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