Airbus posted better-than-expected core earnings in Q1 of 2023

Airbus posted better-than-expected core earnings in the first quarter, with a strong performance by its helicopter segment offsetting a decline in airplane deliveries and negative currency effects. Despite the optimistic outlook, the world’s largest plane maker warned of supply chain disruptions throughout the year and a delay of a few months to early 2026 in the freighter version of its A350 jetliner.

Chief Executive Guillaume Faury singled out engine maker Pratt & Whitney for its inability to juggle the provision of enough engines for new jet production with sufficient spares to airlines to bridge the gap left by faster-than-expected engine wear. Pratt & Whitney competes with GE-Safran venture CFM to power Airbus’ best-selling A320neo, but has been facing problems with the durability of its GTF engines in hot and dusty climates.

Faury confirmed that seats and aircraft structure builders had joined the list of delayed parts, saying, “We need all suppliers to be delivering on time.” In addition, Spirit Aero Systems took several charges in the first quarter, including $81 million related to the Airbus A220, for which it makes the wings.

Airbus posted adjusted quarterly operating earnings of €773 million ($854 million), down 39% as revenues dipped 2% to €11.763 billion ($13 billion). ($1 = 0.9051 euros)

Airbus estimates it will meet annual delivery targets, but with a heavy concentration of deliveries in the last four months.