First-quarter adjusted operating profit at Airbus fell 52% year-over-year to €300 million, down from €624 million in the same period last year. CEO Guillaume Faury stated that despite shortages in Pratt & Whitney engines, the commercial aircraft division continues to ramp up production as planned. Airbus delivered 114 commercial aircraft in the first quarter, compared with 136 a year earlier, marking a noticeable contraction in deliveries.
On Tuesday evening, Airbus released its quarterly financial results. Slower deliveries of its main aircraft models led to a nearly 50% drop in quarterly profit compared with the prior year.
First-quarter revenue reached €12.65 billion (approximately $14.82 billion), with earnings per share of €0.74. Analysts from FactSet had anticipated revenue of €12.58 billion and earnings per share of €0.44.
Adjusted operating profit, excluding special items, declined by 52% to just €300 million, falling short of the market expectation of €378 million.
Airbus had previously disclosed that it delivered 114 commercial aircraft in the first quarter, down significantly from 136 in the same period last year.
Citing constraints from key supplier Pratt & Whitney's engine shortages, Airbus reaffirmed its full-year guidance issued in mid-February: a target of 870 commercial aircraft deliveries in 2026, below market expectations of around 880. This outlook does not account for potential disruptions from global trade, air travel demand, or supply chain issues.
CEO Guillaume Faury mentioned that the company is closely monitoring potential impacts from conflict in the Middle East but did not provide further details.
Faury stated, "In the commercial aircraft segment, we are continuing to increase production rates as planned while managing the Pratt & Whitney engine supply situation. In defense and space, we are expanding capacity to meet growing global demand for our products and services."
By business segment: Airbus commercial aircraft revenue fell 11% year-over-year, helicopter revenue remained flat, and defense and space revenue grew 7%. Total group revenue declined 7% compared with the same quarter last year.
On the orders side, performance was strong: Airbus recorded 408 new commercial aircraft orders, a 46% increase from the prior year.
Analysts noted that investor sentiment toward Airbus has cooled this year, while its main competitor Boeing is gradually recovering after years of crisis.
Boeing had faced prolonged difficulties due to design and production issues with its 737 MAX narrow-body aircraft, allowing Airbus to maintain a dominant industry position.
Last week, Boeing reported a smaller-than-expected loss in its first-quarter earnings, with improvements across key segments including commercial airplanes. Since a major safety incident in January 2024 involving a door plug blowout and subsequent quality issues, Boeing has been working to restore profitability.
Like Airbus, Boeing has also faced persistent supply chain challenges in the post-pandemic environment.
Boeing CEO Kelly Otterberg indicated that since conflict escalated in the Middle East in February, the company has not seen any slowdown in aircraft orders.
UBS analysts noted earlier this month, "The impact of shipping disruptions in the Strait of Hormuz remains limited for now, but if high oil prices persist into the third quarter, we may reassess that view."
They added, "From a demand perspective, global aircraft replacement needs remain strong. Even if oil prices stay elevated long-term, Airbus is unlikely to see a significant drop in overall aircraft demand."
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