Airbus half-year profit falls 20% to 1,526 million euros
Airbus posted a profit of 1.526 billion euros in the first half of 2023, down 20% from the same period last year, the European aeronautics manufacturer announced Wednesday.
Net operating income (Ebit) fell 27% to 1.887 billion euros, despite an 11% increase in revenue to 27.663 billion euros thanks to a sharp rise in aircraft and helicopter deliveries, Airbus said in a statement.
The reason for this decline in Ebit is a series of non-recurring adjustments totaling negative €731 million, of which €651 million is due to a mismatch “between the transaction date and the delivery date”, which can be understood as an impact of accumulated delays in getting the devices into the hands of its customers.
Adjusted Ebit, which is an indicator used by the company that basically excludes the impact of non-recurring operations and movements, limited the decline to 1% with 2,618 million euros.
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In the first half of the year, Airbus delivered 316 commercial aircraft, compared to 297 in 2022, and that explains why revenues in that division rose by 16% to €20,349 million.
However, the division’s Ebit fell by 39% to 1,523 million euros.
In the helicopter business, revenue rose by 16% to €3,194 million and Ebit by 24% to €267 million.
In the defense and space division, revenue fell by 8% to €4,653 million, with Ebit of €87 million, which contrasts with negative €113 million in the first half of 2022.
Airbus CEO Guillaume Faury stressed that in the first half of the year “we made good progress in our business in an operating environment that remains complex.”
Faury also highlighted the “strong demand” for the company, with orders for more than 800 aircraft during the week of the Le Bourget Air Show alone at the end of June.
In the first half of the year as a whole, Airbus received orders for 1,080 aircraft, compared with 442 in the same period of 2022. If cancellations are deducted from these figures, the net figure is 1,044 aircraft.
The European giant is maintaining the major industrial and financial targets it has been setting itself since February for 2023.
That means it is confident of delivering 720 commercial aircraft, achieving adjusted Ebit of €6 billion and cash flow of €3 billion before accounting for perimeter change transactions and customer financing.
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