(Paris) Airbus’ net profit climbed 28% in the first quarter of 2024, to 595 million euros (872 million Canadian dollars), reflecting the increase in aircraft deliveries by the aircraft manufacturer, engaged in a strong increase in the pace of its production.
Between January and March, the group delivered 142 commercial aircraft, compared to 127 over the same period of 2023, and generated a turnover of 12.8 billion euros ($18.76 million), an increase of 9 %, according to a press release published Thursday.
These results were obtained “in an operational context showing no signs of improvement. Tensions persist on the geopolitical scene and in the supply chain,” says its executive president Guillaume Faury, quoted in the press release.
The chain of suppliers, weakened by the pandemic, must also invest and recruit in order to increase its production at the request of the aircraft manufacturer. Added to this are the rise in the cost of raw materials, difficulties in accessing certain components and energy costs which are causing bottlenecks and have limited the European giant’s speed of recovery.
The ramp-up means increasing inventory levels, resulting in free cash flow of -€1.8 billion ($2.6 billion) in the first quarter, below analyst consensus .
However, this is not enough to call into question Airbus’ objective of generating around 4 billion euros ($5.86 billion) in available cash over the year.
Airbus plans to deliver 800 commercial aircraft this year, compared to 735 last year, and still far from the 863 delivered to its customers in 2019, before the outbreak of COVID-19.
However, the aircraft manufacturer is counting on monthly production of 75 A320 family aircraft in 2026. It delivered 48 per month on average last year.
It also plans to increase to 14 single-aisle A220s per month in 2026 and from 3 to 4 long-haul A330s this year.
A sign of Airbus’ confidence in the relaunch of the wide-body aircraft market, already losing momentum before COVID-19 and devastated by the pandemic, the group announced on Thursday its ambition to produce 12 A350s per month in 2028, when it previously planned to manufacture 10 by 2026.
The aircraft, capable of transporting nearly 400 passengers over more than 15,000 kilometers, is increasingly establishing itself as a “best-seller” for the European aircraft manufacturer, with 1,200 orders since it entered service ten years ago. years, in a segment historically dominated by Boeing.
Over the first three months of the year, the A350 accounts for 71 of the 137 orders received by the aircraft manufacturer. And the Indian low-cost company IndiGo, which last year already placed the largest order in volume in the history of civil aviation, with 500 A320s, announced Thursday the purchase of 30 copies of the A350 , with purchase rights for 70 additional devices.