Airbus, the leading European aircraft manufacturer, recently released its consolidated financial results for the first half of 2023, showcasing impressive figures and a positive outlook for the future. Despite a complex operational environment, the company demonstrated resilience and growth across its businesses, fueled by the sustained demand for commercial aircraft and an increasing order backlog.
Impressive Aircraft Deliveries and Record Orders
During H1 2023, Airbus delivered a total of 316 commercial aircraft, surpassing the previous year’s performance of 297 aircraft. This significant increase in deliveries was comprised of 25 A220s, 256 A320 Family aircraft, 14 A330s, and 21 A350s. The company’s commercial aircraft activities also witnessed a revenue surge of 16 percent, largely driven by the higher number of deliveries.
Adding to its accomplishments, Airbus reported gross commercial aircraft orders of 1,080 during H1 2023, compared to 442 aircraft in the same period last year. After accounting for cancellations, the net orders amounted to an impressive 1,044 aircraft, highlighting the continued strong demand for Airbus’ products in the aviation market. As of June 2023, the company’s order backlog reached a record 7,967 commercial aircraft, indicating a promising and robust future for the European aircraft manufacturer.
Financial Performance and Guidance
Consolidated revenues for H1 2023 rose by 11 percent year-on-year, reaching €27.7 billion, compared to €24.8 billion in H1 2022. Moreover, the Consolidated EBIT Adjusted – a key performance indicator – remained stable at €2,618 million, showcasing Airbus’ ability to maintain a healthy underlying business margin.
While Airbus’ EBIT Adjusted related to commercial aircraft activities remained steady at €2,256 million, the company continued to invest in preparing for the future, ensuring it remains at the forefront of aviation innovation. Moreover, Airbus Helicopters’ EBIT Adjusted increased to €274 million, reflecting a solid performance across its programs and services.
In light of the strong H1 performance, Airbus has maintained its guidance for the year 2023. The company aims to achieve around 720 commercial aircraft deliveries, with an EBIT Adjusted of €6.0 billion and Free Cash Flow before M&A and Customer Financing of €3.0 billion. The guidance is based on the assumption that there will be no additional disruptions to the world economy, air traffic, supply chain, and internal operations.
Investing in the Future and Innovation
Airbus continues to make strategic investments in its programs, with the ramp-up on the A220 and A320 Family programs progressing smoothly. The recent inauguration of a new A321 capable final assembly line in Toulouse marks a significant milestone in Airbus’ global industrial system development. Furthermore, the flight test program for the A321XLR is on track for an expected entry-into-service in Q2 2024.
On the widebody aircraft front, Airbus aims to achieve a rate of 4 for the A330 in 2024 and a rate of 9 for the A350 at the end of 2025, demonstrating the company’s commitment to meeting market demands and enhancing its competitiveness.
A Positive Path Forward
Airbus’ impressive H1 2023 results demonstrate its ability to thrive in a complex operating environment and showcase its dedication to excellence and innovation. With strong demand for its commercial aircraft and a record order backlog, the company is well-positioned to maintain its industry-leading position. By continuing to invest in the future and stay at the forefront of technological advancements, Airbus is set to shape the future of aviation and provide customers with cutting-edge solutions for years to come.