European aircraft manufacturer Airbus says its revenues and net profit fell during the first quarter of the year

Airbus, the European aircraft manufacturer, reported a decrease in its revenues and net profit during Q1 2023 due to a decline in aircraft deliveries caused by ongoing supply chain issues. In the first three months of the year, the company delivered 127 aircraft, down from 142 in the same period in 2022. As a result, the company’s revenue dipped by 2%, to €11.76 billion ($13.0 billion), while its net profit fell by 62%, to €466 million.

Chief executive Guillaume Faury attributed the decline to an “adverse operating environment” and persistent tensions in the supply chain. Despite these challenges, Airbus recorded a record profit of €4.2 billion in 2022, despite supply chain disruptions hampering its production.

Airbus was forced to reduce production and jobs during the pandemic, which led to airlines halting most operations. However, as airlines have gradually resumed operations, Airbus has faced difficulties in scaling up production, as have some of its suppliers. In addition, the company has encountered sourcing difficulties for certain parts due to the Russian invasion of Ukraine.

The company’s commercial aircraft activities experienced a 5% year-on-year decrease in revenues, primarily due to the lower number of deliveries. The defence and space unit saw revenues decrease by 6%, while the helicopter unit experienced a 26% jump in revenues due to increased deliveries.

Airbus’ Q1 performance was also impacted by a charge of €360 million due to changes in the value of the US dollar between pre-payment and settlement when aircrafts were delivered. Despite these challenges, the company’s 2023 outlook remains unchanged, with commercial aircraft deliveries projected to increase from 661 last year to 720 this year.