(AOF) – Airbus provided an update on its commercial activity for the month of January 2024. The aeronautical group delivered 30 commercial aircraft last month to 18 customers. At the same time, 31 gross orders were recorded in January. At the beginning of January, the aircraft manufacturer announced that it had delivered 735 to 87 customers against 720 planned, an increase of 11% compared to 2022.
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Key points
– World co-leading aeronautical manufacturer with Boeing, born in 1949 under the name Aérospatiale, diversified into satellites;
– Turnover of €58.8 billion, 70% from civil aircraft, 19% from defense & space activities and 19% from helicopters;
– Business model of offering safe and environmentally friendly aeronautical and space solutions, with a strong commitment to society and public services;
– Open capital with strong positions from the French, German (11% each) and Spanish (4%) states, the board of directors of 9 members being chaired by René Obermann, Guillaume Faury being general manager;
– Financial situation supported by public finances with €9.4 billion in net liquidity and free self-financing of €4.3 billion.
Challenges
– “Next chapter” initiative based on 3 pillars – simplification, strengthening and growth – and aimed at creating a more profitable, more resilient company and leader in the decarbonization of the industry;
– Innovation strategy integrated into the business model and supported by €3.1 billion in R&D:
– “Fast-Track” roadmap prioritizing electrification, industrial systems, connectivity, autonomy, hardware and artificial intelligence,
– “CRT” organization focused on disruptive technologies, associated with external partnerships;
– Environmental strategy validated by the SBTi with the ambition to become number 1 in carbon-free aviation:
– by 2030, 63% reduction in scope 1 and 2 emissions and, by 2035, 46% reduction in emissions generated by commercial aircraft in service,
– design of a “ZEROe” aircraft with hybrid-hydrogen fuel,
– integration into the reporting of emissions emitted by customers,
– launch of 2 hydrogen engine development centers in France and Germany,
– abundance of initiatives -High5+ for reducing emissions and waste during the production process, Sentinel 5P for air data, Air Race E…
– integration of ESG criteria in certain credit facilities;
– Resumption of hiring and acceleration of the pace of production;
– Visibility of the activity: order book of €449 billion increased by €82.5 billion in order intake in 2022 (1,078 commercial aircraft, 362 helicopters, including 12 H160s and €13.7 billion in order intake for defense and space, in particular the combat system of the future and the eurodrone system);
– Positive impact of the rise in the dollar, the sales currency for 80% of revenues;
Challenges
– Russia-Ukraine war: medium-term search for new sources of supply of titanium and gel;
– Postponement of the entry into service of the A321XLR initially planned for early 2024;
– Concerns after delays in delivery of civil aircraft at the end of 2022;
– Execution of the industrial ramp-up targeting a rate of 9 Airbus 350s by the end of 2025;
– After a 3.3% increase in operating profit at the end of September 2022, 2023 targets: delivery of 720 civil aircraft, increase in operating profit to €6 billion and cash flow of around €3 billion;
– 2022 dividend of €1.8, up 14%.
The end of a duopoly?
For several decades, the American Boeing and the European Airbus have shared 99% of the world market for airliners with more than 110 seats. This market is worth more than 100 billion dollars per year. However, this duopoly appears weakened in 2022 for several reasons. First, for the first time, two medium-haul single-aisle aircraft, the C919 from China’s Comac and the MC-21 from Russia’s Irkut, are preparing to enter service. Added to this is the Boeing 737 MAX crisis. With the cessation of deliveries of this aircraft between 2019 and 2021, the production balance has been disrupted. In 2021 Boeing posted 340 deliveries, with Airbus remaining well in the lead, with 611.