By Bjorn Fehrm
October 28, 2022, © Leeham News: Airbus presented its results for the first nine months of 2022 today. Airbus’ problem is how to fulfill demand as the supply chain is still recovering from COVID.
The deterioration of supply chain performance has stopped, according to Airbus CEO Guillaume Faury, but not improved. Performance is now steady but at a lower level than Airbus needs. The planned rate increases in single aisle and widebody are unchanged, but in addition to planned increases in single aisle, discussions have started with the supplier base on how to increase production of widebodies as demand has picked up.
Airbus delivered 437 commercial aircraft in the first nine months, compared with 424 last year. Guidance for the year is unchanged at 700 deliveries and €5.5bn EBIT, except for Free Cash Flow, which will increase to €4.5bn due to a strong dollar.
Revenue for 9M2022 was €38.1bn (€35.2bn 9M2021), operating profit €3.5bn (called EBIT adjusted, -€3.4bn 9M2021), and net profit was €3.1bn (€2.95bn).
Free cash flow for 9M2022 was €2.9bn (€2.3bn), and the net cash position end of 9M2021 was €8.0bn (€7.7bn 2021.12).
Guidance for 2022 is now:
Of the 437 (424) delivered aircraft, 340 (341) was A320/A321, 34 (34) A220, 42 (36) A350, 21 (11) A330.
Market demand for single aisle is strong, and with A321s at over 50% of the A320 backlog, all FALs are upgraded to produce A321s.
The monthly delivery rate for the A320 family is 50 right now, increasing to 65 by early 2024 (was mid 2023) and to 75 by 2025. Airbus glider inventory is now single digit as engine suppliers deliver according to a downward revised plan.
The entry into service of the A321XLR is now 2Q2024 from “early 2024” before.
In addition to strong A321 demand, where A3221XLR is the star, according to Faury, the widebody side sees increased demand. The number of widebody sales campaigns are above expectations, and Airbus sounds out the supply chain for future rate increases above the present ones (A330 from two to three right now, A350 from five to six in early 2023).
The helicopter increased revenue by 9.1% to €4.5bn (€4.1bn) and EBIT by 22% to €0.38bn (€0.3bn).
Revenues increased 10% to €7.6bn (€6.9bn). Due to international sanctions, EBIT sank 19% to €0.2bn (€0.3bn).
Seven A440M were delivered in 9M2022.