Airbus net profit falls despite increased sales

Revenue from commercial aircraft sales alone rose by 16 percent thanks to the higher deliveries.

Airbus said Wednesday its revenue increased in the first half of this year as it handed more aircraft to clients and confirmed its target for a nine percent annual increase in deliveries.

Consolidated revenue rose 11 percent to 27.7 billion euros ($30.7 billion) as it delivered 316 commercial aircraft, an additional 19 from the first half of last year.

Revenue from commercial aircraft sales alone rose by 16 percent thanks to the higher deliveries.

Airbus confirmed its target of delivering around 720 commercial aircraft this year.

The company's helicopters unit also boosted sales by 16 percent, but delays in deliveries led to an eight percent sales drop in the defence unit.

Profits took a hit as Airbus re-evaluated the value of pre-delivery payments made in dollars, in its euro-denominated financial accounts, taking a charge of 651 million euros.

Net profit fell 20 percent to 1.5 billion euros.

"During the first half of 2023 we progressed well across our businesses in an operational environment that remains complex," chief executive Guillaume Faury said in a statement.

He said demand for its commercial aircraft remained strong, pointing to 800 orders announced at the Paris Air Show.

Net orders totalled 1,044 during the first half of the year, more than four times the amount during the first six months of 2022.

That is already close to its annual totals the past two years and puts Airbus within striking distance of its 2014 record of 1,590 aircraft.

"This demand is driven both by growth and fleet replacement as airlines invest in more fuel efficient fleets," said Faury.

But as Airbus gets paid when it delivers aircraft, picking up the pace of production is essential.

It confirmed plans to make 75 of its best-selling single-aisle A320 family aircraft per month in 2026.

This production rate "is now the key reference point for the Company", it acknowledged.

But it dropped reference to making 65 A320 aircraft per month in 2024 and said "tactical adjustments to production planning will continue to be made as required".

Airbus' order book stood at 7,967 aircraft as of June 30, including 6,740 A320 family aircraft.