Airbus Q1 2019 earnings affected by German embargo
Airbus maintains its guidance for 2019 after reporting its financial results for the first quarter of the year. The European manufacturer points at the German embargo on Saudi arms exports
Consolidated revenues increased to € 12.5 billion (Q1 2018: € 10.1 billion). A total of 162 commercial aircraft were delivered (Q1 2018: 121 aircraft), including 8 A220s, 126 A320 Family, 5 A330s, 22 A350s, and 1 A380. Airbus Helicopters delivered 46 units (Q1 2018: 52 units).
Consolidated EBIT Adjusted increased to € 549 million (Q1 2018: € 14 million), driven by Airbus. Airbus’ EBIT Adjusted improved to €536 million (Q1 2018: € -41 million), due to the A320neo ramp-up as well as progress on the A350 financial performance.
A total of 96 A320neo Family aircraft were delivered in the quarter. The overall A320 Family programme is on track to reach 60 aircraft per month by mid-2019 and preparing for rate 63 in 2021. On the A330 programme, 5 aircraft were delivered in the first quarter, including 3 NEOs. A330neo deliveries continue to ramp-up and Airbus is working closely with its engine partner and suppliers to deliver in line with customer commitments. The flight test campaign of the A330-800 variant is progressing.
Airbus Defence and Space’s EBIT Adjusted of € 101 million (Q1 2018: € 112 million) reflected the Division’s overall stable business performance. According to the manufacturer, the impact of the German embargo on Saudi arms exports has resulted in a financial burden of € 190 million on its defense sector. A contract between Saudia Arabia and Airbus for 48 new Eurofighter Typhoon fighter jets, valued at €11 billion, has been on halt since late 2018. The plane maker also expects to sell some of its latest military transport aircraft, the A400M, to the Saudi kingdom.
One A400M was delivered in the first quarter of 2019, bringing the global fleet to 75 aircraft in service.
“The first quarter underlying financials mainly reflect our commercial aircraft ramp-up and delivery phasing,” said Airbus Chief Executive Officer Guillaume Faury. “The commercial aircraft market remains robust and we continue to see good prospects in the helicopters and defence and space businesses. The new management team is in place and focused on delivering on our commitments.”
For the full financial report, click here.
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