Airbus Reports Modest Growth in Revenue and Deliveries, with Mixed Results Across Divisions

Airbus reported its year-to-date financial results for 2024, showing a 5 percent increase in consolidated revenue to €44.5 billion, up from €42.6 billion in the same period last year. Growth was driven primarily by a slight increase in commercial aircraft deliveries and strong performances in the helicopter and defense segments.

However, a decline in adjusted EBIT related to the commercial aircraft business and a sharp drop in gross aircraft orders highlight the complex dynamics Airbus is navigating in the current aerospace market.

Commercial Aircraft Deliveries and Orders

Commercial aircraft remained the largest revenue driver for Airbus, with total deliveries rising slightly to 497 units, including 45 A220s, 396 A320 Family aircraft, 20 A330s, and 36 A350s.

Revenue from this segment rose 4 percent year-over-year, largely due to the incremental increase in deliveries. However, adjusted EBIT in the commercial segment declined to €3.028 billion, down from €3.216 billion in the previous year. Airbus attributed this decrease in EBIT to increased investment costs related to future aircraft programs, which partially offset gains from higher deliveries.

One concerning factor for Airbus is the substantial decline in gross commercial aircraft orders, which fell to 667 units from 1,280 in the prior year. Net orders, after cancellations, were 648 aircraft, down from 1,241 last year.

This decline in new orders, despite maintaining a substantial order backlog of 8,749 aircraft, may raise questions about future demand trends as Airbus works to maintain its competitive position in the commercial aircraft market.

Helicopters and Defense Show Positive Momentum

In contrast to the softer commercial aircraft performance, Airbus Helicopters recorded solid results, with revenue rising 5 percent even though deliveries dropped slightly to 190 units from 197 in the prior year.

Airbus attributed the revenue growth to a favorable mix of programs and strong demand for services, indicating a shift towards more high-value helicopter models. Orders for Airbus Helicopters surged, with 308 net orders compared to 191 last year, driven in part by significant demand for the Super Puma Family, which includes 43 heavy helicopter units.

Airbus Defence and Space also reported growth, with revenue increasing 7 percent due to gains in its Air Power business. This segment’s performance was partially tempered by prior Estimate at Completion (EAC) adjustments in Space Systems, indicating that while Airbus is benefiting from new contracts, some programs continue to experience budgetary pressures.

Nonetheless, Airbus delivered five A400M military airlifters, up from four in the same period last year, and registered a notable rise in order intake to €11.0 billion, up from €8.5 billion. This growth reflects positive momentum across defense divisions as global demand for military and defense capabilities remains high.

Outlook for 2024

Looking ahead, Airbus has set specific targets for year-end performance, aiming to achieve approximately 770 commercial aircraft deliveries and an adjusted EBIT of around €5.5 billion. The company also anticipates generating free cash flow before customer financing of about €3.5 billion. These targets suggest that Airbus expects steady progress in its core segments while remaining focused on cost management and investment in future technologies.

However, with pressures in commercial aircraft order volumes and rising costs for upcoming programs, the company’s ability to meet these targets may hinge on stabilizing demand and efficiently managing its growing production pipeline.

Conclusion

Airbus’s year-to-date results show moderate growth across several key areas, with incremental gains in deliveries and strong results in its helicopter and defense segments.

The significant decline in new commercial aircraft orders, coupled with increased investment costs, reflects both challenges and opportunities for Airbus as it prepares for the future. With an ambitious target for year-end deliveries and earnings, the company’s performance in the final quarter of 2024 will be critical to assessing its resilience in a dynamic and competitive aerospace market.