Airbus Soars in Q1: Deliveries Up, A350 Gets Production Boost

Airbus defied turbulence in the global economy, delivering a strong first quarter (Q1) of 2024. The European aviation giant reported a healthy increase in aircraft deliveries, positive financials, and a strategic move to ramp up production of its popular A350 widebody jet.

Airbus delivered 142 commercial aircraft in Q1, a significant jump from 127 in the same period last year. This upswing reflects the company’s successful execution of production ramp-up plans across various programs. Customer confidence remained high, with Airbus securing 170 gross commercial aircraft orders and a perfect order-to-delivery ratio (no cancellations).

Consolidated revenues reached €12.8 billion, marking a 9% year-on-year increase. While EBIT Adjusted dipped slightly due to strategic investments and employee share ownership initiatives, net income remained positive at €595 million, translating to earnings per share of €0.76.

In a major announcement, Airbus revealed plans to significantly increase the production rate of its A350 aircraft. By 2028, the company aims to produce 12 A350s per month, catering to the surging demand for this fuel-efficient jetliner.

Despite ongoing geopolitical and supply chain challenges, Airbus maintains its 2024 guidance. The company targets to deliver around 800 commercial aircraft, achieve EBIT Adjusted between €6.5 billion and €7.0 billion, and generate Free Cash Flow before Customer Financing of around €4.0 billion.

Airbus CEO Guillaume Faury acknowledged the persistent headwinds impacting the aerospace industry. However, the company’s strong Q1 performance and commitment to innovation inspire cautious optimism. The production ramp-up plans and strategic decision to boost A350 production position Airbus to meet evolving customer needs and navigate the challenging global landscape.