Airbus raises targets for long-haul A350

Investment in production lines to support strong demand for aircraft from airlines and hiring of new staff weighed on Airbus' Q1 results, which saw operating profit fall 25 per cent to EUR 577 million from EUR 773 million in Q1 2023. Investments to support growth had an impact on cash, which saw a €1.8bn outflow, bringing cash on hand to €8.7bn. 'It was not a super strong quarter,' commented cfo Thomas Toepfer in the call with analysts. At the same time, net profits rose 28 per cent to EUR 595 million compared to EUR 466 million in the same period last year.

"Our plans to increase production continue supported by investments," said CEO Guillaume Faury. On the acquisition of part of Spirit Aerosystems, the supplier to Boeing and Airbus: 'We are in the early stages and there are several options,' he added.

The commercial aircraft division supported consolidated revenue increased by 9% to EUR 12.8 billion compared to EUR 11.8 billion in Q1 2023. In particular, the commercial aircraft division alone increased turnover by 13% supported by the higher number of deliveries: 142 aircraft were delivered in the first quarter (there were 127 in the same period of 2023), of which 12 A220s, 116 of the A320 family, 7 A330s and 7 A350s. The order book stands at 8,626 aircraft. The world's largest aircraft manufacturer also announced to increase the production target for its wide-body A350 model to 12 per month in 2028 from the current 10, amid a resurgence in demand for long-haul aircraft. The A350 competes with Boeing's 787 Dreamliner and the yet-to-be-certified 777-9 model. The production target of 800 aircraft for the current year is confirmed, although supply chain difficulties continue to weigh heavily, as the manufacturer is increasing production to meet rising demand. "We delivered Q1 2024 results in an operating environment that shows no signs of improvement," the CEO added. Geopolitical and supply chain tensions continue. Financial targets of an adjusted Ebit between EUR 6.5 and 7 billion were confirmed.

After Japan Airlines, Indigo the Indian low-cost carrier yesterday announced an order for 30 Airbus 350-900s with deliveries scheduled to start in 2027 and an option for a further 70. The Indian carrier is one of Toulouse's main customers, having placed an order for 500 aircraft of the A320neo narrow body family last summer and with an order book of 1,000 aircraft. This order the first wide-body for the Indian company represents a change of strategy for the low-cost carrier which covers 60% of the domestic market. Airbus said that ramp-up for its smaller A220 model continues towards a monthly rate of 14 aircraft in 2026, and that the A320 programme is progressing towards 75 aircraft per month in 2026, with the long-haul A321XLR scheduled to enter service in the third quarter of this year.