Airbus reports falling profts as jet deliveries slow

First-quarter sales came in at 12.65 billion euros ($14.82 billion) while earnings per share (EPS) were 74 euro cents. Analysts polled by FactSet had expected sales of 12.58 billion euros and EPS of 44 euro cents.

On an adjusted basis, operating profits declined by 52% to 300 million euros, down from 624 million euros in the same period last year.

Airbus had already disclosed that it delivered 114 commercial aircraft in the first quarter, versus 136 aircraft in the same quarter last year.

In mid-February, Airbus said it expected to deliver 870 commercial aircraft in 2026, fewer than the roughly 880 analysts had expected, citing engine shortages due to issues with one of its suppliers, Pratt & Whitney. That guidance didn’t assume any additional disruptions to global trade, air traffic, or supply chain.

“The pace at which Airbus can translate this into higher deliveries has become the key swing factor for earnings and valuation,” said Jefferies analysts ahead of the print.

Airbus’ commercial aircraft unit sales fell 11% in the quarter compared to a year ago, while helicopters were unchanged and defence and space grew 7%. Total revenue declined by 7% in the quarter.

Airbus has enjoyed a strong momentum over the past few years as Boeing has been battling a crisis over design and production issues for its best-selling narrowbody plane, the 737 Max. 

Last week, Boeing reported a narrower-than-expected loss in the first quarter, as it saw improvements across its businesses, including its key commercial aircraft unit. Boeing is in the midst of a turnaround to return to profitability after a series of quality issues and a near-catastrophic blowout of a fuselage door plug in January 2024.

Like Airbus, Boeing has also struggled 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.

“We see limited impacts arising from the disruption around the Strait of Hormuz, though we may revisit this assumption if fuel prices remain high into Q3,” noted UBS analysts earlier this month.

“On the demand side we believe there is sufficient replacement demand that, even in a prolonged period of elevated fuel prices, Airbus is unlikely to see a demand shortfall.”

— CNBC’s Leslie Joseph contributed to this report