Airbus earnings more than double
Airbus pre-tax profits more than doubled for the first half of the year compared with the first six months of 2018.
The aircraft manufacturer made €2,529 million on revenue of €30.9 billion, which was up €5.9 billion year on year.
Adjusted pre-tax profits for the first six months of 2019 came in at €2,338 million, compared to €867 million. Airbus said the increase mainly reflected the A320 ramp up and NEO premium, further progress on the A350 financial performance and an improvement in foreign exchange rates in the second quarter.
It delivered 389 commercial aircraft in the first half, 86 more than during the same period of 2018, 294 of which were A320s, and 234 of these were NEO aircraft.
Airbus CEO Guillaume Faury said: "We continue to see good demand for our competitive product portfolio, including the new A321XLR, as shown by the strong market endorsement at June’s Le Bourget airshow. Our operational focus is mainly on the A320neo Family ramp-up."
However, he added: "The second half of the year in terms of deliveries and in particular free cash flow continues to be challenging."
The European aircraft manufacturer is also facing the possibility of tariffs being imposed on its aircraft by the US, and possible EU retaliatory tariffs imposed on aircraft parts manufactured in the States. The US Trade Representative (USTR) said in April that it intended to add tariffs to aircraft manufactured in the EU.
In a statement this morning, Airbus said: "If the USTR decides to impose tariffs on Airbus products and other products from the EU, this could significantly affect the delivery of new Airbus aircraft and helicopters to the US market and have a negative effect on Airbus’ financial condition and results of operations.
"The potential decision of the EU to impose tariffs on US products could come at a later stage. Airbus continues to support an outcome through a negotiated solution."
Airbus expects to deliver 880 to 890 commercial aircraft in 2019 and it is forecasting a 15% increase in adjusted earnings for the full year. It received a boost today with an order from Air France-KLM of 60 more of its A220 aircraft, manufactured by Canada-based Bombardier which Airbus took over last year.
The airline has taken options for 60 more A220s and also announced that it will retire its double-decker A380 from 2022. It is looking to replace the long-haul double-decker aircraft, which Airbus has ceased to produce, with either Boeing 787s or the A330neo.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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