During the first half of 2022, Airbus reported solid financial results despite ongoing operational complexities. The geopolitical and economic situation created a highly complex operating environment with several uncertainties for the sector.
According to the manufacturer’s report, the challenges posed by the present tensions in supply chains have led it to adjust its A320 family production forecasts for this year and next. The current target will be to manufacture 65 units by the first half of 2024. Despite this, Airbus CEO Guillaume Faury noted that “the results are in line with revenue and cash flow forecasts”. On forecasts for the more distant future, he added that “strong demand is driving our commitment to our suppliers. We will seek to achieve a monthly production rate of seventy-five A320 family aircraft by 2025”.
Operational results
Operating results in terms of gross orders (excluding cancellations) for Airbus’ commercial backlog reached 442 aircraft, versus 165 in the first half of last year. Net orders -after computing canceled aircraft- amounted to 259 units (38 during the same period of 2021). The manufacturer’s backlog counts 7,046 planes.
Airbus delivered a total of 297 commercial aircraft in this period, the same number as in the first half of 2021. These include twenty-five A220s, two hundred and thirty A320-family aircraft, thirteen A330s, and twenty-nine A350s. On the military side, four A400Ms were delivered.
As for the A320 program and given the current challenges imposed by the supply chain, the company is adapting the production ramp-up trajectory. The current production rate would be raised more gradually and is expected to reach a monthly rate of 65 units in early 2024, some six months later than planned. One of the major milestones of the half-year was the first flight of the A321XLR that took place in June. Entry into service of the type is expected for early 2024.
On the Airbus Helicopters side, it received 163 net orders (H1 2021: 123 units), including 14 Super Pumas. In Q1, it was awarded the contract for the Tiger MkIII attack helicopter upgrade program.
The value of Airbus Defence and Space orders, meanwhile, increased to €6.5 billion, almost double that of 2021 (€3.5 billion). Notable orders in the second quarter included the contract for 20 Eurofighters for the Spanish Air Force.
Financial results
Revenues of the world’s largest aircraft manufacturer increased by €200 million compared to the first half of 2021: €24.8 billion versus €24.6 billion. Revenues from commercial activities were virtually flat, Airbus Helicopters was up 6%, and Defence and Space was 11% up. Pre-tax and inflation-adjusted revenues remained close to last year’s value: €2,645 million.
Airbus’ free cash flow was €1,955 million. The company has a gross cash position of €21.6 billion. This number is around €1 billion lower than in the same half of last year and resulted from the repurchase of part of the debt bonds.
