Airbus profit drops as earnings collapse at main jet unit

Published Wed, Apr 29, 2026 · 06:39 AM

AIRBUS suffered a steep profit drop in the first three months of the year as aircraft deliveries slowed to the lowest since 2009, putting pressure on the manufacturer to fix its supply chain at a time when rival Boeing regains its manufacturing edge.

Adjusted earnings before interest and tax fell 52 per cent to 300 million euros (S$449 million), while sales dipped to 12.65 billion euros, the Toulouse, France-based company said on Tuesday (Apr 28). Airbus was expected to report adjusted operating profit of about 512 million euros on sales of 12.87 billion euros, according to analysts surveyed by Bloomberg.

Airbus reiterated its forecast for about 870 commercial aircraft deliveries this year, saying the low handover rate in the first quarter is in line with expectations and that the pace will accelerate towards the end of 2026.

The company said that engine maker Pratt & Whitney remains “the key pacer” for the ramp-up of its bestselling A320 model, impacting both this year and next. Negotiations to improve deliveries remain ongoing, Airbus said, though no progress has been made since the company first flagged the issue in February.

“The operating environment remains dynamic and complex,” CEO Guillaume Faury said. “We are closely monitoring the potential impact from the fast-changing situation in the Middle East.”

Still, so far, no customer has sought cancellations or postponements of any aircraft orders as a result of the higher fuel costs and the ensuing crisis engulfing the aviation industry, the CEO said on a call with journalists.

The European manufacturer has endured a difficult start to the year, cutting its monthly production plan for the A320 in February and low-balling its annual delivery goal as it struggles to get its hands on enough engines.

The planemaker has faulted Pratt & Whitney for failing to meet contractual obligations, leaving Airbus at a disadvantage just as Boeing continues to improve output.

Adjusted operating profit at the main commercial aircraft subsidiary slumped 84 per cent to 81 million euros, while earnings at the defence subsidiary rose 69 per cent. The manufacturer maintained its monthly production target of the regional A220 jets at 13 units in 2028 and 12 of its largest model the A350 for the same year.

At this point, Airbus is not close to launching stretch versions of its A220 and A350-1000 aircraft, a plan that remains in focus but is not near being unveiled, Faury said.

Airbus reported a cash outflow of 2.5 billion euros in the quarter, compared with a 310-million euros drop a year earlier, because of the lower aircraft delivery and a planned build-up of inventory as it prepares for higher output. Free cash flow before customer financing will reach about 4.5 billion euros this year, Airbus said, reiterating its previous goal. Adjusted Ebit for the year will reach around 7.5 billion euros, the company said.

Investors will view these results as a “soft start” to the year and it could pressure the stock in the near term, Ken Herbert, an analyst at RBC Capital Markets, said in a note on Tuesday. The unchanged guidance is a positive for sentiment considering the weaker-than-consensus results in the first quarter, Herbert wrote.

The company recorded 114 deliveries in the first three months, a 16 per cent decrease from the same period last year. Airbus cut its annual delivery goal last year following the discovery of faulty fuselage panels on the A320 models that required additional inspections, delaying output.

Airbus expects to be back on track with deliveries by the end of June after an “administrative” issue delayed the delivery of almost 20 aircraft to China during the first quarter, Faury said on a call with analysts Tuesday.

Boeing has continued its recovery with higher output and more steady operations at its defence and services units. The US planemaker handed over more planes than Airbus in the same period this year and sold more jets than its European competitor in 2025, ending a seven-year losing streak.

The aviation sector is experiencing one of its most challenging periods as jet fuel prices surge on the conflict in Iran and some of the world’s biggest airlines curb operations amid the fighting. BLOOMBERG