Airbus has reported consolidated financial results for its first quarter ending March 31, 2023, with deliveries of 127 commercial aircraft.
Guillaume Faury, Airbus Chief Executive Officer commented on the results:
“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,” he said. “We continue to face an adverse operating environment that includes in particular persistent tensions in the supply chain. 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.”
Gross commercial aircraft orders totalled 156 (Q1 2022: 253 aircraft), with net orders of 142 aircraft after cancellations (Q1 2022: 83 aircraft). The order backlog amounted to 7,254 commercial aircraft at the end of March 2023. Airbus Helicopters registered 39 net orders (Q1 2022: 56 units) which were well spread across programmes. Airbus Defence and Space's order intake by value was €2.5 billion (Q1 2022: €3.2 billion).
Consolidated revenues decreased slightly to €11.8 billion (Q1 2022: €12.0 billion). A total of 127 commercial aircraft were delivered (Q1 2022: 142 aircraft), comprising ten A220s, 106 A320 Family, six A330s and five A350s. Revenues generated by Airbus' commercial aircraft activities decreased 5% year-on-year, mainly reflecting the lower deliveries, partly offset by the strengthening of the US dollar. Airbus Helicopters deliveries increased to 71 units (Q1 2022: 39 units), mainly driven by the Light Helicopter segment. The Division's revenues rose 26%, mainly reflecting deliveries and a solid performance across programmes, favourable mix effects as well as a good start to the year in services. Revenues at Airbus Defence and Space decreased 6 percent, mainly driven by lower volume in Military Air Systems and in Space Systems. One A400M transport aircraft was delivered in Q1 2023.
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 programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses – decreased to €773 million (Q1 2022: €1,263 million).
EBIT Adjusted related to Airbus' commercial aircraft activities decreased to €580 million (Q1 2022: €1,065 million). The decrease reflects the lower deliveries, a slightly less favourable hedge rate compared to Q1 2022 and investments for preparing the future. Q1 2022 included the positive impact from retirement obligations partly offset by the impact resulting from international sanctions against Russia.
The ramp-up on the A220 programme is continuing towards a monthly production rate of 14 aircraft by the middle of the decade. On the A320 Family programme, the Company continues to ramp-up 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 will increase global industrial capacity to ten final assembly lines for the A320 family, supporting Airbus' plans to produce 75 aircraft per month in 2026. The flight test programme of the A321XLR is progressing and entry-into-service is expected to take place in Q2 2024.
As previously announced, the company targets rate 4 for the A330 in 2024 and rate 9 for the A350 at the end of 2025. On the A350F, the first components were recently produced by Airbus Atlantic in Nantes. As the first milestones are reached, the industrial planning for this variant is being slightly adjusted with the entry-into-service now slipping into 2026.
Airbus Helicopters' EBIT Adjusted increased to €156 million (Q1 2022: €90 million), reflecting the solid performance across programmes, favourable mix effects and the good start in services. Q1 2022 also included net positive non-recurring elements.
EBIT Adjusted at Airbus Defence and Space decreased to €36 million (Q1 2022: €106 million), mainly reflecting the lower volume in Military Air Systems and in Space Systems. Q1 2022 also included net positive non-recurring elements. (£1.00 = €1.14 at time of publication).
