Airbus reported a decline in its first-quarter profit as supply chain issues have held back aircraft deliveries. Over the period, net profits fell 62% to €466m, with revenues down 2% to €11.76bn from €12bn in Q1 2022. 127 aircraft were delivered, the 11% less than the 142 of the same period last year. The figure places the world‘s top aircraft maker behind American manufacturer Boeing for the first time in five years.
In the three months, Ebit fell 73% to 390 million, while adjusted Ebit fell 39% to 773 million euros from 1.26 billion euros in the same period last year. Free cash flow recorded a negative value of 886 million against a positive figure of 213 million euros in the first quarter of 2022.
The group has left its guidance for the full year unchanged compared to last February: the expectation is for an adjusted Ebit of 6 billion euros, a free cash flow of 3 billion and 720 commercial aircraft delivered with a delivery rate «significantly» lower in the first half compared to the second half of the year. The date of entry into service of the cargo version of the A350 has been postponed to 2026.
Airbus is struggling to meet the growing demand for aircraft from airlines as travel is picking up again after the pandemic crisis. Making the supply chain problematic are the suppliers of components ranging from seats to semiconductors to raw materials, a chain that when it goes wrong makes it difficult to complete and deliver the aircraft with a direct impact on profits and cash flows from the moment that Airbus recognizes revenue only when the aircraft is delivered. Supply constraints could last until the end of 2024 or even 2025, putting pressure on the ambitious production target of the best-selling A320neo family of 75 jets per month by 2026.
The company “continues to deal with an unfavorable operating environment, marked by persistent tensions in the supply chain,” said Airbus CEO Guillaume Faury. Looking ahead, the group “remains focused on accelerating commercial aircraft deliveries and long-term transformation.”