PARIS, FRANCE – European aircraft manufacturer Airbus said Wednesday its revenues and net profit fell during the first quarter of the year as deliveries dropped amid continuing supply chain difficulties.
The company delivered 127 aircraft in the first three months of this year, down from 142 during the same period last year.
While this had only a modest impact on revenue, which dipped two percent to US$13.0 billion (11.76 billion), net profit fell by 62 percent to US$514 million (466 million euros).
“We continue to face an adverse operating environment that includes in particular persistent tensions in the supply chain,” said chief executive Guillaume Faury.
Airbus posted a record profit of US$4.6 billion (4.2 billion euros) in 2022 despite supply chain problems limiting its ability to raise production.
The company slashed production and jobs during the pandemic when airlines halted most operations, and it has had trouble scaling production back up, as have some of its suppliers.
The Russian invasion of Ukraine also complicated sourcing certain parts.
Revenues generated by Airbus’ commercial aircraft activities decreased by five percent year-on-year, mainly reflecting the lower deliveries, the company said.
The company’s defense and space unit saw revenues drop by six percent, while the helicopter unit jumped by 26 percent as deliveries rose.
The first quarter performance was also hit by a charge of $397 million (360 million euros) due to change in the value of the US dollar from when some pre-payments were made to settlement when aircrafts were delivered.
The company said it’s 2023 outlook remains unchanged, which is for commercial aircraft deliveries to rise from 661 last year to 720 this year.
That outlook is based upon no additional disruptions to the world economy or air traffic, as well as to its supply chain.
