Airbus reports consolidated revenue increase of 12% in nine months
…foresees bullish financial performance in the last quarter
Airbus, a leading aircraft manufacturing company, has released its consolidated financial report for the nine months ending September 30, 2023.
The report made available to TW highlights robust operational progress amidst a challenging global environment, with key insights shared by Airbus CEO Guillaume Faury.
Faury stated, “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 programs.”
He emphasized the strong demand for commercial aircraft, particularly in the widebody market, while acknowledging ongoing challenges in the supply chain.
Key financial highlights include gross commercial aircraft orders totaling 1,280, reflecting a significant increase from the previous year.
Net orders reached 1,241 aircraft after cancellations, contributing to a substantial order backlog of 7,992 commercial aircraft at the end of September 2023.
Airbus Helicopters registered 191 net orders, and Airbus Defence and Space order intake amounted to €8.5 billion.
Consolidated revenues increased by 12 percent year-on-year, reaching €42.6 billion.
The company’s commercial aircraft deliveries saw a notable uptick, with 488 aircraft delivered, comprising various models such as A220s, A320 Family, A330s, and A350s.
The company’s EBIT (earnings before interest, taxes) Adjusted, a key performance indicator, reached €3,631 million, reflecting the underlying business margin.
Airbus’ commercial aircraft activities saw an increase to €3,216 million in EBIT Adjusted, driven by higher deliveries and a favorable hedge rate.
Looking ahead, Airbus has outlined plans for the A220 and A320 Family programs, with a focus on production ramp-up. The A321XLR is progressing towards certification, with an expected entry-into-service in Q2 2024.
Additionally, production rates for the A350 are set to increase to 10 aircraft a month in 2026.
While Airbus Helicopters reported an EBIT Adjusted increase, Airbus Defence and Space faced a decrease, attributed to backloaded A400M deliveries and satellite development program adjustments. The company is actively pursuing a transformation of its Defence and Space division to enhance competitiveness and adapt to evolving security environments.
Consolidated free cash flow, before M&A and customer financing, was €1,037 million, reflecting the back loaded delivery profile and production ramp-up.
Airbus has maintained its guidance for 2023, targeting 720 commercial aircraft deliveries, EBIT Adjusted of €6.0 billion, and Free Cash Flow before M&A and Customer Financing of €3.0 billion.
In a significant development, Airbus received notice from the US State Department, closing the Consent Agreement initiated in January 2020.
This marks the conclusion of a three-year probation period, demonstrating Airbus’s commitment to compliance and integrity, enabling the company to move forward in a sustainable and responsible manner.
