Airbus reports half-year 2018 financial results

Eleanor Steed
By Eleanor Steed July 30, 2018 16:48

Airbus reports half-year 2018 financial results

For the first half of 2018, Airbus consolidated revenues were stable at €25.0 billion (H1 2017: €25.2 billion), reflecting the commercial aircraft delivery mix and perimeter changes as well as the weakening of the US dollar. Deliveries totalled 303 commercial aircraft (H1 2017: 306 aircraft), comprising 239 A320 Family, 18 A330s, 40 A350 XWBs and six A380s.

Consolidated EBIT Adjusted totalled €1,162 million (H1 2017: €553 million), while Airbus’ EBIT Adjusted of €867 million (H1 2017: €257 million), reflected mainly the strong improvement on the A350 programme and the A320neo ramp-up and transition.

“The first half financials reflect the back-loaded deliveries due to A320neo engine shortages, while on the positive side there was a strong improvement on the A350 programme,” said Airbus Chief Executive Officer Tom Enders. “A320neo aircraft deliveries picked up during the second quarter but challenges remain to meet our full year targets. Market demand remains strong for the expanded Airbus portfolio that now includes the A220 at the smaller end. The recent Farnborough Airshow underlined this, with new business for over 400 single-aisle and wide-body aircraft announced. Our operational focus in commercial aircraft remains squarely on securing the production ramp-up. On our largest military programme, the A400M, we are making progress operationally, on improving capabilities as well as in negotiations with governments for the necessary contract amendment.”

Net commercial aircraft orders increased to 206 (H1 2017: 203 aircraft) with gross orders of 261 aircraft including 50 A350 XWBs and 14 A330s. The order backlog by units totalled 7,168 commercial aircraft as of 30 June 2018.  During July’s Farnborough Airshow, Airbus announced orders and commitments for a total of 431 aircraft although these are not yet reflected in the order book.

A total of 110 A320neo aircraft were delivered (H1 2017: 59 aircraft) with more NEO (new engine option) versions delivered than CEO (current engine option) versions in the second quarter. The ramp-up is ongoing, says Airbus. “Engine manufacturers are working to meet their commitments and resources and capabilities have been mobilised internally,” the result announcement states. “A recovery plan is in place and the number of stored aircraft has started to decline from the end of May peak but risks remain to meet the 800 aircraft delivery target, which is challenging.”

As the basis for its 2018 guidance, Airbus expects the world economy and air traffic to grow in line with prevailing independent forecasts, which assume no major disruptions. Airbus targets to deliver around 800 commercial aircraft, without the A220 Family. On top, around 18 A220 deliveries are targeted for H2. Before M&A, the company expects EBIT Adjusted of approximately €5.2 billion in 2018.

Eleanor Steed
By Eleanor Steed July 30, 2018 16:48