In a recent announcement, Airbus, the European aircraft manufacturing company, disclosed a remarkable 21% increase in its quarterly net profits. This boost is attributed to their continued efforts in assembling and delivering more aircraft to their customers.
The Financial Uptick
The company’s financial reports indicate that their quarterly net profits reached 806 million euros (approximately 863 million dollars), while quarterly revenues saw a 12% increase compared to the same period last year, totaling 14.9 billion euros.
This surge in profit comes as Airbus focuses on ramping up aircraft production after having significantly reduced it during the COVID-19 pandemic.
CEO’s Statement
In a statement regarding the earnings, CEO Guillaume Faury commented, “The nine-month profits reflect an increase in commercial aircraft deliveries, strong performance in the helicopter division, and proceeds from satellite development program re-evaluation.”
Like its American rival, Boeing, Airbus generates significant revenue when they deliver aircraft to their customers. During the July to September period, Airbus delivered 172 aircraft to customers, marking a 22% increase from the same quarter in the previous year.
Meeting Targets
With this, Airbus has delivered up to 488 aircraft this year, steadily progressing towards their goal of delivering a total of 720 commercial aircraft in 2023. The company had set a record by delivering 863 commercial aircraft in 2019, before the global air travel industry was deeply affected by the COVID-19 pandemic.
Airbus maintains its outlook for adjusted operating profits of 6 billion euros.
The Post-Pandemic Demand
Following the containment of the COVID-19 crisis, which virtually shut down international air travel in 2020, airlines swiftly resumed ordering new aircraft. These new planes offer significant fuel efficiency gains.
Airbus’s total order backlog now stands at nearly 8000 aircraft, a notable increase from 7482 aircraft before the pandemic outbreak.
However, supply chain disruptions have hindered plans to increase production, leading Airbus to record charges of 400 million euros for estimated delivery delays.
Conclusion
In conclusion, Airbus’s substantial increase in quarterly profits is a testament to the resurgence of the aviation industry following the pandemic’s adverse impact. As the demand for new and efficient aircraft continues to grow, Airbus remains a prominent player in the field. The company’s ability to meet its delivery targets despite supply chain challenges underscores its resilience and adaptability.
