PARIS (Reuters) – Airbus reported on Thursday a sharp drop in first-quarter operating profit (Ebit) and well below expectations, after hiring more staff to prepare for rising demand, while reaffirming its financial objectives for 2024.
The European manufacturer also announced a higher production target for its A350 model, of 12 per month in 2028, amid renewed demand for long-haul aircraft. Its current goal is 10 devices per month in 2026.
Airbus posted an adjusted Ebit of 577 million euros, down 25% year-on-year, while analysts expected 789 million euros according to a consensus compiled by the company.
It also recorded a negative cash flow of 1.8 billion euros, compared to -1.3 billion expected by analsytes.
The negative effect linked to the increase in Airbus’ employee shareholding plan led to an increase in expenses over one year of just over 100 million euros, the group explains in a press release.
Furthermore, “tensions persist on the geopolitical scene and in the supply chain”, commented Guillaume Faury, the group’s general manager, adding that he saw “no sign of improvement”.
Demand for aircraft has rebounded, driven by a surge in tourism following the COVID-19 pandemic and fears of shortages in supply chains as some planes remain grounded due to maintenance delays and that the rival, Boeing, is mired in crisis.
“The ramp-up of the A320 program is progressing towards monthly production of 75 aircraft per month in 2026,” added Airbus.
The European aircraft manufacturer announced that it had delivered 142 commercial aircraft in the first quarter of 2024.
(Reporting by Tim Hepher, writing by Zhifan Liu, editing by Kate Entringer)
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