Airbus Financial Overview for 1H24
In the first half of 2024, Airbus experienced a notable shift in its financial landscape, marked by a decrease in adjusted earnings before interest and tax (EBIT) to €1,391 million compared to €2,618 million in the same period last year. This reduction was largely attributed to significant charges of €989 million in the Airbus Space Systems sector. Despite these challenges, Airbus maintained a resilient performance in its commercial aircraft operations, although EBIT for this segment also saw a decline to €1,954 million from €2,256 million in 2023. The company’s consolidated revenues, however, showed a positive trajectory, increasing by 4% to €28.8 billion from €27.7 billion in 1H23, bolstered by a mix of commercial aircraft deliveries and a more robust portfolio of business from the Airbus Defence and Space division.
Commercial Aircraft Sector Analysis
Airbus reported a decrease in gross commercial aircraft orders to 327 against 1,080 in the first half of 2023, with net orders settling at 310 after considering cancellations. Despite this slowdown, Airbus’ backlog remains strong with 8,585 outstanding orders for commercial aircraft as of June 2024. The company delivered 323 commercial aircraft during this period, which is a slight increase from 316 in the previous year. The deliveries included 28 A220s, 261 from the A320 family, 13 A330s, and 21 A350s. Airbus continues to focus on scaling up the A220 series, targeting a monthly production rate of 14 aircraft by 2026. Adjustments were made to the A320 family production plans, now projecting to reach a production rate of 75 aircraft per month by 2027 due to ongoing supply chain challenges. For widebody aircraft, the company aims to sustain a monthly production rate of four A330s and increase the A350 rate to 12 by 2028.
Airbus Helicopters and Defence and Space Dynamics
The Airbus Helicopters division registered a substantial increase in net orders, capturing 233 in 1H24 compared to 131 in the prior year. This includes a significant order for up to 44 H225s by the German Federal Police. However, helicopter deliveries were slightly down with 124 units compared to 145 in 1H23, leading to a stable revenue performance year-on-year. EBIT for this division saw a drop to €230 million from €274 million, reflecting the lower delivery volume. Meanwhile, Airbus Defence and Space sustained its growth trajectory with a slight increase in orders valued at €6.1 billion and a 7% revenue increase. The division also delivered four A400M military planes, one more than in 1H23. However, adjusted EBIT showed a substantial dip to -€807 million, primarily due to €989 million in charges related to revised estimates in the Space Systems projects.
Farnborough 2024: New Agreements
At the Farnborough International Airshow 2024, Airbus secured a significant agreement with flynas, which committed to acquiring 75 A320neos and 15 A330neos. This deal not only underscores Airbus’ strength in the commercial aircraft market but also highlights the ongoing demand for fuel-efficient and technologically advanced aircraft solutions in the global aviation industry.