A week after the Farnborough International Airshow (FIA) and on the back of masses of commercial aircraft orders – Airbus has reported that its core profit doubled in the second quarter (Q2) ending 30 June.
Europe’s biggest commercial aircraft maker said Q2 adjusted operating earnings doubled to €1.148 billion ($1.35 billion) up from €572 million in Q2 last year, driven by A320neo deliveries and cost improvements.
The French aircraft manufacturer said it reflected the strong improvement and included from A350 XWB programme, A320neo ramp-up and transition as well as solid programme execution at Airbus Helicopters and Airbus Defence and Space.
Q2 revenues rose by eight per cent to €14.851 billion, fuelled by commercial aircraft deliveries and Q2 EBIT (Earnings before interest and taxes) increased by 45 per cent to €921 million. Net Income decreased by 69 per cent, mainly driven by negative foreign exchange effects and a higher effective tax rate.
Airbus chief executive officer, Tom Enders (pictured right) said A320neo aircraft deliveries picked up during Q2 but “challenges remain to meet our full year targets“.
He added: “Market demand remains strong for the expanded Airbus portfolio that now includes the A220 at the smaller end. The recent Farnborough Airshow underlined this, with new business for over 400 single-aisle and widebody aircraft announced.
“Our operational focus in commercial aircraft remains squarely on securing the production ramp-up.”
Net commercial aircraft orders increased to 206 (H1 2017: 203 aircraft) with gross orders of 261 aircraft including 50 A350 XWBs and 14 A330s. The order backlog by units totalled 7,168 commercial aircraft as of 30 June 2018.
During July’s FIA, Airbus announced orders and commitments for a total of 431 aircraft although these are not yet reflected in the order book.