LONDON – Airbus has released its Q1 2019 report, which is the first report with new CEO Guillaume Faury at the helm, who took control on April 10.
The report shows good growth in the manufacturers’ financials which is mainly reflected in the A320 family ramp-up in both production and delivery.
The report shows that gross commercial aircraft order totalled 62 aircraft and included 38 A350 XWBs, the Q1 2018 report had shown 68 aircraft by the same period.
The net commercial aircraft orders come in at -58 which has been the result of 120 cancellations, which are mainly reflected from the companies decision to wind down the A380 programme and the commercial agreement with Etihad which was shown in the full-year 2018 report.
The cancellation from the middle eastern carrier was for 42 A350 XWBs after the airline announced it’s intentions for a restructure which has seen them cancel orders of other variants too, including Boeing’s 777X.
The net orders will in doubt have been affected by the collapse of some airlines in recent months, with Primera air one such airline which had A321LR aircraft on order.
“The first quarter underlying financials mainly reflect our commercial aircraft ramp-up and delivery phasing,” said Airbus Chief Executive Officer Guillaume Faury.
“The commercial aircraft market remains robust and we continue to see good prospects in the helicopters and defence and space businesses. The new management team is in place and focused on delivering on our commitments.”
Despite the net orders coming in at -58 Airbus are still on track for a record year, they have as of March 31, 2019, an aircraft backlog of 7,357 aircraft.
Airbus made deliveries of 162 commercial aircraft in the first quarter of 2018, an increase of 42 aircraft when compared to Q1 2018 which reported only 121 aircraft.
The delivered aircraft comprised of, eight A220s, 126 A320 family aircraft, five A330s, 22 A350s and one A380.
Airbus’ consolidated revenues have shown an increase to € 12.5 billion, which is a 2.4 billion increase from Q1 2018 which stood at € 10.1 billion.
The increase is mainly reflecting the companies higher commercial aircraft delivery and production rates and is expected to rise as they continue to ramp-up production.
The biggest rise for Airbus was in the EBIT which is an alternative performance measure and a key indicator of the companies underlying business margins has shown a very strong increase to € 549 million a massive increase from the Q1 2018 report which came in at € 14 million.
The increase is attributed to the large increase in the A320neo program and the continuing financial progress of the A350 XWB programme.
In the reported it is stated at a total of 96 A320neo family aircraft were delivered in the first Quater, this constitutes over half of the total A320 family deliveries recorded alone.
The report goes on to detail element of the production that Airbus is continuing to plan to work on.
One of these if for the Cabin Flex version of the A321 ramp-up has been continued in Q1 but the manufacturer does state that it remains a challenge for them.
It is also working to improves the execution of its internal industrial system and monitoring engine performance.
What is clear however is the overall success of forecast success of the companies A320 family programme, which is on track right now to achieve 60 aircraft per month by mid-2019 an already astonishing delivery rate.
However, Airbus also said that it will look to continue to ramp-up the programme to be able to achieve rates of 63 aircraft per month by 2021.
What may not be surprising to hear is the news on the A330 programme, five aircraft were delivered in the first quarter which includes three NEOs.
This does not tell the whole story however as Airbus is still working to ramp-up the production of this aircraft and said that it will continue to work closely with its engine partner and suppliers to deliver the aircraft in line with the customer commitments.
The report does not go into detail into the struggling A330-800neo variant, but just simply states that the flight test campaign is progressing, the aircraft variant is, of course, the least ordered by airlines, with the only two carriers placing orders for these jets.
In conclusion, the report shows great growth forecast for Airbus over 2019, and while it is not yet clear to see how the later reports this year will look, it is possible that with the woes of the Boeing 737 MAX some airlines may look to replace its orders for Airbus’ A320neo family range.