European aircraft manufacturer Airbus performed below market expectations in the first quarter of the year due to disruptions in commercial aircraft deliveries and the weak course of the US dollar. Airbus announced its financial results for the first three months of the year ending March 31. Accordingly, the company’s adjusted operating profit decreased by 52 percent compared to the same period last year, falling to 300 million euros.
The company’s total revenues decreased by 7 percent to 12.65 billion euros. Analysts expected the company to make a profit of 348 million euros in the first quarter on revenue of 12.39 billion euros. Airbus Chief Executive (CEO) Guillaume Faury blamed US-based supplier Pratt as the main reason for the poor performance. In the first quarter of the year, Airbus was able to deliver only 114 commercial aircraft, falling behind the 136 deliveries in the same period last year.
This figure was also below its US rival Boeing, which delivered 143 aircraft in the same period. Since transactions in the aviation industry are carried out in dollars, the weak course of the dollar against the euro negatively affected the company’s revenues. Adjusted operating profit, particularly in the passenger and cargo aircraft unit, fell by a sharp 84 percent. In addition, the company realized a cash outflow of approximately 2.5 billion euros before customer financing, demonstrating a cash consumption well above experts’ estimates.
Meanwhile, despite the decline in the overall picture, Airbus’ defense and space unit performed better than expected. The unit announced an adjusted core profit of 130 million euros, exceeding analysts’ expectations of 111 million euros. On the other hand, despite the production and supply difficulties, Airbus management maintained its optimism for the end of 2026. The company did not change its targeted delivery number of 870 aircraft for this year and its adjusted operating profit target of approximately 7.5 billion euros.
In addition, it reiterated its strategy to increase the production rate of A320 family aircraft to 70-75 per month by the end of 2027. Source: AA
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