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Aviation

Revenues 12.8b and EBIT Adjusted 0.6b for Airbus in the First Quarter of 2024

Airbus

The company targets to achieve in 2024 around 800 commercial aircraft deliveries and EBIT Adjusted between 6.5 and 7.0 billion euros.

AMSTERDAM – Airbus SE reported consolidated financial results for its First Quarter (Q1) ended 31 March 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 totalled 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 euros (Q1 2023: 2.5 billion euros).

Consolidated revenues increased 9 percent year-on-year to 12.8 billion euros (Q1 2023: 11.8 billion euros). 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 totalled 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 4 percent mainly driven by the Air Power business, partly offset by a less favourable 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 programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses – was 577 million euros (Q1 2023: 773 million euros). 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 euros.

EBIT Adjusted related to Airbus’ commercial aircraft activities decreased to 507 million euros (Q1 2023: 580 million euros), with the positive impact from higher deliveries being offset by a slightly less favourable 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 programme’s industrial maturity and financial performance. On the A320 Family programme, 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 rate 4 for the A330 in 2024.

Airbus Helicopters’ EBIT Adjusted decreased to 71 million euros (Q1 2023: 156 million euros), from a particularly strong first quarter in 2023 and reflecting the lower deliveries.

EBIT Adjusted at Airbus Defence and Space decreased to -9 million euros (Q1 2023: 36 million euros), 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 programme, development activities continue towards achieving the revised capability roadmap. Retrofit activities are progressing in close alignment with the customer. No net material impact was recognised 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.

Consolidatedself-financed R&D expenses totalled 743 million euros (Q1 2023: 683 million euros).

Consolidated EBIT (reported) amounted to 609 million euros (Q1 2023: 390 million euros), including net Adjustments of +32 million euros.

These Adjustments comprised:

  • -13 million euros related to the dollar working capital mismatch and balance sheet revaluation. This mainly reflects the phasing impact arising from the difference between transaction date and delivery date;
  • +51 million euros related to the gain on Airbus OneWeb Satellites, linked to the recent acquisition of the remaining 50% of the joint venture;
  • -6 million euros of other costs including compliance costs.

The financial result was 229 million euros (Q1 2023: 149 million euros), mainly reflecting a positive impact from the revaluation of certain equity investments. Consolidated net income(1) was 595 million euros (Q1 2023: 466 million euros) with consolidated reported earnings per share of 0.76 euros (Q1 2023: 0.59 euros).

Consolidated free cash flow before customer financing was -1,791 million euros (Q1 2023: -876 million euros), mainly reflecting the planned inventory build-up resulting from the execution of the ramp-up across programmes. Consolidated free cash flow was 1,799 million euros (Q1 2023: -873 million euros). The gross cash position stood at 23.4 billion euros at the end of March 2024 (year-end 2023: 25.3 billion euros), with a consolidated net cash position of 8.7 billion euros (year-end 2023: 10.7 billion euros).

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 euros and 7.0 billion euros;
  • Free Cash Flow before Customer Financing of around 4.0 billion euros.
Vicky Karantzavelou
Co-Founder & Chief Editor - TravelDailyNews Media Network | Website

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.

She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.

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