By Bjorn Fehrm
April 27, 2018, ©. Leeham News: Airbus Group presented its 1Q2018 results this morning. It’s heavily influenced by A320neo engine delivery delays.
Only 30 A320neos were delivered during Q1 out of a year total of 400. This has left Airbus with 60 A320neo gliders parked at Toulouse and Hamburg, waiting for engines.
The Airbus revenue and profit for 1Q2018 were down to €10.1bn (€11.4bn 1Q2017) and €0.01bn (€-0.2bn) as a result of the A320neo delivery problems.
Airbus group headquarters and Commercial aircraft is now merged into a unit called simply Airbus. It dominates the group with 72% of revenue, at €7.2bn (€6.7bn). The helicopters business is still experiencing a weak market with revenue down at €0.96bn (€1.2bn).
Defence is stabilizing at revenue of € 2.2bn (€2.3bn) despite the sale of the US Communications business. The problem child A400M now has a renegotiated delivery plan and expects to deliver 20 aircraft per year from 2020.
Group guidance for 2018 is kept. This does not include the big Joker, the integration of CSeries into Airbus. Integration work is going better than expected and is now expected to close mid-2018. Airbus is planning aggressive sales activities for a “State of the art CSeries line” after the close. The rumoured names for the aircraft once in Airbus are A210 (CS100) and A230 (CS300).
Airbus plans to deliver 600 A320 during 2018 whereof 400 A320neo. This is still the target after a first quarter with only 30 neos delivered of a total of 95. Pratt & Whitney is now delivering engines again after reintroducing the original knife edge seal instead of the troubled updated seal. Both engine manufacturers assure Airbus they will reach the year targets despite initial delays.
The A320 line is now sold out until 2023 and Airbus is studying how to reach rate 70/month or higher after reaching rate 63 next year.
Sales of the A330neo is not going to plan. Airbus will, therefore, reduce from 60 planned deliveries this year to 50 for 2019. The replacement cycle for A330 will then kick in after 2020 and will lift the rate once again, according to Airbus CFO Harald Wilhelm. The 787 Trent 1000 engine problems are not affecting A330neo as it has another version of the Trent 1000 family.
A350 production is running well and Airbus is confident of 10 deliveries per month at end of 2018. The program is on track to be cash positive before 2020.
After securing 20 orders and 16 options from Emirates in the first quarter, the production of A380 at a rate of six per year is now secured well into the next decade.