Airbus SE (AIR) has released its financial results for the first half of 2024. The results highlight the resilience and strategic focus of its commercial aircraft division.
Despite facing industry-wide challenges, Airbus continues to demonstrate strong performance and adaptability in the commercial aviation sector.
Commercial Aircraft Orders: A Closer Look
The commercial aircraft division of Airbus reported the following order statistics for H1 2024:
- Gross orders: 327 aircraft (down from 1,080 in H1 2023)
- Net orders: 310 aircraft (down from 1,044 in H1 2023)
- Order backlog: 8,585 aircraft (as of June 30, 2024)
While the order numbers have decreased year-over-year, the substantial backlog underscores the ongoing strong demand for Airbus aircraft.
This robust backlog provides a solid foundation for future production and deliveries.
Delivery Performance and Revenue Growth
Airbus delivered 323 commercial aircraft in H1 2024, a slight increase from 316 in the same period last year. The breakdown of deliveries includes:
- 28 A220s
- 261 A320 Family aircraft
- 13 A330s
- 21 A350s
This delivery performance contributed significantly to Airbus’s overall financial results. The company reported consolidated revenues of €28.8 billion. This represents a 4% increase from H1 2023, with the commercial aircraft activities seeing a 4% rise in revenues.
Production Ramp-Up and Program Updates
Airbus continues to focus on increasing production rates across its commercial aircraft lines:
A220
The company is targeting a production rate of 14 aircraft per month by 2026, with a particular emphasis on improving the program’s industrial maturity and financial performance.
A320 Family
Airbus has adjusted its ramp-up trajectory to address specific supply chain challenges. The production rate of 75 A320 Family aircraft per month is now expected to be reached in 2027.
A321XLR
This new long-range variant achieved a significant milestone with Type Certification from EASA for the CFM-powered version in July 2024. Entry-into-service is anticipated by the end of summer 2024.
Widebody Aircraft
Airbus aims to reach a monthly production rate of 4 A330s in 2024 and 12 A350s by 2028.
Strategic Focus and Challenges
Guillaume Faury, Airbus Chief Executive Officer, emphasized the company’s priorities. “In commercial aircraft, we are focused on deliveries and preparing the next steps of the ramp-up.”
“Meanwhile we are addressing specific supply chain challenges and protecting the sourcing of key work packages.”
This statement highlights Airbus’s strategic approach to managing the complex interplay between production increases, supply chain constraints, and delivery commitments.
Looking Ahead: 2024 Guidance
Airbus has set ambitious targets for 2024, assuming no additional disruptions to the global economy, air traffic, supply chain, or internal operations:
- Commercial aircraft deliveries: Around 770
- EBIT Adjusted: Approximately €5.5 billion
- Free Cash Flow before Customer Financing: About €3.5 billion
These targets reflect Airbus’s confidence in its commercial aircraft division’s ability to navigate current challenges and capitalize on the ongoing recovery in the aviation sector.
Conclusion
Airbus’s commercial aircraft division demonstrates firm resilience in the face of industry-wide challenges.
By focusing on delivery execution, strategically managing production ramp-ups, and addressing supply chain issues, Airbus maintains a sound position with its commercial aviation product.
The strong order backlog provides a solid foundation for future growth, while the introduction of new variants like the A321XLR showcases Airbus’s commitment to innovation.
As the aviation industry continues its recovery, Airbus’s commercial aircraft division appears well-positioned to meet market demands and drive long-term success.
However, the company must remain vigilant in addressing supply chain constraints and production challenges to achieve its ambitious delivery targets for 2024 and beyond.
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