Airbus delivered 127 jetliners in Q1, a 9% drop from 2022

Airbus delivered 127 jetliners in the first quarter, a 9% drop from a year earlier, as parts shortages that marred last year’s output spilled over into 2023.

Deliveries totaled 61 aircraft in March, the world’s biggest planemaker said Tuesday Apr. 11. The first-quarter drop will make it harder for Airbus to reach its goal of increasing shipments to 720 this year, according to Berenberg.

While results picked up in March, “we think there is a downside risk tilt to estimates” for this year and next as Airbus becomes increasingly dependent on second-half improvements, Berenberg analysts led by Philip Buller wrote in a note.

Meeting delivery targets is crucial for cash flow at Airbus and Boeing because the bulk of payments are due upon delivery. Airbus got off to a slow start in January, handing over just 20 planes after supply chain constraints held up production.

Boeing Parity
The March figures mean Airbus likely lagged behind Boeing in first-quarter deliveries. Jefferies analyst Sheila Kahyaoglu estimates the US manufacturer handed over 130 planes in the period, including 64 in March. Boeing has been ramping up production of its top-selling jet, the 737 Max, and working down inventories of the 787 Dreamliner.

Bloomberg reported last week that Boeing plans to produce 38 Max units a month by mid-year, a 23% increase from the current pace. The company, which is scheduled to report first-quarter figures on Tuesday, last eclipsed Airbus on an annual basis in 2018.

Production trends at Airbus are encouraging, according to Jefferies’ Chloe Lemarie. Still, Airbus will need to surpass 2022 production by 14% in the final three quarters of this year to hit its targets, she said in a note.

While engine shortages — a major factor in last year’s bottlenecks — have eased, Chief Executive Officer Guillaume Faury has warned supply issues will stalk the planemaker at least through year-end.

“We expect our commercial aircraft delivery profile to be back-loaded again,” the CEO said on a February conference call. “In light of ongoing geopolitical and macroeconomic turbulences, risks of further disruptions remain.”

Airbus delivered 661 aircraft in 2022, after lowering its target from an initial 720. It handed over 140 jetliners in the first quarter of last year.

Parts, Labor
The parts shortages have forced Airbus, based in Toulouse, France, to slow an ambitous output ramp-up for its A320 family of single-aisle jets.

Sanctions tied to Russia’s invasion of Ukraine have made it harder for Airbus, Boeing and their suppliers to secure raw materials like titanium, and have driven up prices. China’s Covid Zero policies also disrupted parts flows, and post-pandemic labor shortages have hit subcontractors, Faury said in November.

The European planemaker is targeting 65 A320-family units per month by the end of 2024, with a further rise to 75 in 2026. Both goals are about a year later than Airbus’s previous projections. As part of the effort, Airbus last week announced that it would double its production capacity in China with a second A320 final-assembly line.

First-quarter sales totaled 142 after cancellations, Airbus said. March orders were 18 units by the same measure. The planemaker also signed a contract for four A350 freighters from an undisclosed customer, according to data released by Airbus.

Airbus shares were down 0.2% to 125.98 euros at 2:20 p.m in Paris. The stock is up 13% this year, while Boeing has gained 11% in New York. bloomberg.com