Airbus SE has reported consolidated financial results for the first half (H1) of 2023, demonstrating strong performance across its operations despite a complex operational environment.

Strong Performance Despite Complex Environment

“During the first half of 2023, we progressed well across our businesses in an operational environment that remains complex. Our commercial aircraft are in strong demand, as demonstrated by more than 800 orders announced at the Paris Air Show. This demand is driven both by growth and fleet replacement as airlines invest in more fuel-efficient fleets,” said Guillaume Faury, Airbus Chief Executive Officer.

The company reported gross commercial aircraft orders totaling 1,080, with net orders of 1,044 aircraft after cancellations. This indicates a significant increase from H1 2022, which saw 442 and 259 gross and net orders, respectively. The order backlog reached a record 7,967 commercial aircraft at the end of June 2023.

Strong Financial Performance

Airbus reported an 11% year-on-year increase in consolidated revenues, reaching €27.7 billion (H1 2022: €24.8 billion). They delivered a total of 316 commercial aircraft, comprising 25 A220s, 256 A320 Family, 14 A330s, and 21 A350s.

Consolidated EBIT Adjusted – which excludes material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses – was €2,618 million.

Continued Progress and Guidance Maintenance

Based on the H1 2023 performance, Airbus maintains its 2023 guidance. The ramp-up on the A220 program is continuing towards a monthly production rate of 14 aircraft in the middle of the decade. On the A320 Family program, production is progressing well towards the previously announced rate of 75 aircraft per month in 2026. The recent inauguration of a new A321 capable final assembly line in Toulouse marked a significant milestone in the development of Airbus’ global industrial system.

For widebody aircraft, the Company continues to target rate 4 for the A330 in 2024 and rate 9 for the A350 at the end of 2025.

Outlook

The guidance issued in February 2023 is maintained. On that basis, the Company targets to achieve in 2023 around 720 commercial aircraft deliveries, an EBIT Adjusted of €6.0 billion, and a free cash flow before M&A and customer financing of €3.0 billion. These predictions assume no additional disruptions to the world economy, air traffic, the supply chain, the Company’s internal operations, and its ability to deliver products and services.

Airbus’s H1 2023 results show a resilient performance amidst a complex operational environment. The growth in demand for commercial aircraft, a record order backlog, and a strong financial performance demonstrate the company’s ability to navigate challenges effectively. Moreover, the maintenance of the 2023 guidance reveals confidence in the continued strength of the global aviation market and Airbus’s capacity to meet this demand.

Airbus’s commitment to increasing production rates and delivering a targeted 720 commercial aircraft in 2023 is a robust indicator of the company’s vision for future growth. Furthermore, Airbus’s pursuit of a more efficient, sustainable future with its ongoing A220 program and the development of the A321XLR signifies a strategic pivot towards meeting the market needs of tomorrow.

Given Airbus’s strong performance in H1 2023, how do you see the landscape of the global aviation market evolving in the near future, especially with the ongoing trends of fleet replacement with more fuel-efficient aircraft and a shift towards sustainability?

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