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Airbus reported a sharp decline in its first-quarter performance, with profit falling significantly below market expectations due to lower aircraft deliveries. Engine supply issues from Pratt & Whitney disrupted production schedules, while administrative delays also affected deliveries to China. Despite these challenges, demand for aircraft remained stable, especially in the Middle East, driven by high fuel prices and the need for efficiency. The company has maintained its full-year targets and continues to work toward resolving supplier issues while aiming to meet its annual delivery goals.
Airbus reported a significant drop in its first-quarter earnings, missing market estimates as aircraft deliveries slowed due to ongoing engine supply issues. The company’s adjusted operating profit declined by 52% year-on-year to 300 million euros (USD 351 million), while revenue fell 7% to 12.65 billion euros during the quarter. Advertisement
Market expectations were higher, with analysts projecting an adjusted operating profit of 348 million euros on revenue of 12.39 billion euros, based on company-compiled estimates.
The decline in performance was largely linked to lower aircraft deliveries. Airbus delivered 114 commercial aircraft during the quarter, a 16% drop compared to 136 units in the same period last year. The figure was also lower than Boeing’s 143 aircraft deliveries, indicating improved momentum for the US-based rival.
The company is working to meet its full-year delivery target of 870 aircraft for 2026. Despite the slower start, Airbus has maintained its annual guidance and continues to target a production rate of 70 to 75 A320-family aircraft per month by the end of 2027. This target had been revised earlier from a previous plan to reach 75 aircraft per month at the start of 2027.
A key challenge for Airbus has been delays in engine supplies from Pratt & Whitney, which have affected its ability to complete aircraft deliveries on time. The company has been dealing with ongoing supply constraints from the US-based engine manufacturer, which remain below required levels.
Airbus CEO Guillaume Faury indicated that discussions with Pratt & Whitney are ongoing, but no agreement has been reached so far. He stated that both sides are continuing efforts to resolve the issue, while also managing a parallel dispute related to delays.
Industry reports in the past had indicated that Airbus was exploring the possibility of seeking damages from the supplier over late deliveries, highlighting the seriousness of the issue.
In addition to engine-related challenges, the company also faced an administrative delay that impacted nearly 20 aircraft deliveries to Chinese customers. This issue has since been resolved, and deliveries are expected to proceed as planned.
Despite operational challenges, Airbus noted that demand remains strong across key markets. The Middle East, in particular, has not seen any cancellations or postponements. The company highlighted that higher jet fuel prices are encouraging airlines to invest in more fuel-efficient aircraft, even as some carriers adjust flight frequencies.
Source Reuters
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