Airbus Q1 Profit Drops 52% to 300 Million Euros on Slower Aircraft Deliveries

Airbus's first-quarter adjusted operating profit declined by 52% to 300 million euros from 624 million euros in the first quarter of the previous year, as deliveries of its commercial aircraft slowed. The company delivered 114 commercial aircraft in the first quarter, compared to 136 in the same period last year, contributing to the profit drop. 82 billion.

Earnings per share stood at 74 euro cents. Airbus's commercial aircraft unit sales fell 11% in the first quarter compared to the previous year, while the helicopters unit sales remained unchanged and the defence and space unit sales grew 7%.

Total revenue declined by 7% in the quarter. Airbus received gross commercial aircraft orders totaling 408 in the first quarter, up 46% from the previous year. The company reiterated its guidance to deliver 870 commercial aircraft in 2026, a figure issued in mid-February and fewer than the 880 aircraft expected by analysts.

Airbus stated that its guidance does not assume additional disruptions to global trade, air traffic, or supply chain. CEO Guillaume Faury said the company is closely monitoring any potential impact from conflict in the Middle East. 'In commercial aircraft, we continue to ramp up and produce as per our plan while navigating the shortage of Pratt & Whitney engines,' Faury said.

' CNBC reported that Airbus has enjoyed strong momentum over the past few years amid rival Boeing's challenges, but investor sentiment around Airbus has turned more sour since the start of the year as Boeing shows signs of recovery. Boeing reported a narrower-than-expected loss in its first quarter last week, with improvements in its commercial aircraft unit.

Boeing has faced a series of quality issues, including a near-catastrophic blowout of a fuselage door plug in January 2024, and struggles with supply crunches following the Covid-19 pandemic.

Boeing CEO Kelly Ortberg said the company is not seeing a slowdown in aircraft orders since the war in the Middle East began in February. UBS analysts noted limited impacts from disruptions around the Strait of Hormuz, though they may revisit assumptions if fuel prices remain high into the third quarter.

The analysts stated that sufficient replacement demand exists, making it unlikely for Airbus to face a demand shortfall even in prolonged periods of elevated fuel prices.

Highlighting the company's presence in global aviation events. Airbus continues to navigate engine shortages from supplier Pratt & Whitney, as mentioned in its quarterly update.