Overview
- Airbus said adjusted operating profit fell 52% to €300 million in the first quarter as deliveries dropped to 114, a sharp hit because most aircraft revenue is only booked when jets are handed over.
- The main bottleneck is a shortfall of Pratt & Whitney engines for A320-family jets, and Airbus is also fixing defects found in A320 fuselage panels that are tying up production in the first half.
- A certification issue in China deferred nearly 20 handovers from the first to the second quarter, and the finance chief said the problem has been resolved.
- Despite the weak start, Airbus kept targets for about 870 deliveries and €7.5 billion in adjusted profit for the year, with Pratt set to prioritize airline needs for the summer and send more engines to Airbus in the second half.
- Investors have marked down Airbus shares since January as Boeing delivered 146 jets in the quarter, widening scrutiny of Airbus’s pace and recovery plan.