Airbus Suffers Decrease in Profits

Airbus’s Profits Fall by 11% to 3.8 Billion Euros in 2023

European aircraft manufacturer Airbus has reported a decrease in its net profit by 11% to 3.8 billion euros ($4.1 billion) in 2023. This decline has been attributed to expenses arising from its space division.

Despite facing challenges in the supply chain, the company delivered 735 aircraft last year and aims to deliver “around 800” in 2024. The announced figure, though decreased, was still the third-largest profit figure announced by Airbus, following its bumper year of 4.2 billion euros in 2022.

Airbus CEO Guillaume Faury expressed, “We recorded strong order intake across all our businesses in 2023 and delivered on our commitments. This was a significant achievement given the complexity of the operating environment.”

The company also set a new record by ordering 2,094 aircraft in 2023, with the A320 and long-range A350 jets being at the top of the order list.

While the group’s revenues increased by 11% to 65.4 billion euros, commercial aircraft revenues specifically saw a 15% increase. Additionally, Airbus Helicopters delivered 346 helicopters in 2023, with revenues increasing by 4%. Airbus Defense and Space also saw a 2% increase in revenues.

However, the space division’s profits fell by 40% to 229 million euros due to a one-off expense of 600 million euros. Facing competition from US rival SpaceX, Airbus’ space division has also been impacted by delays and high costs in the development of its geostationary satellites. As a result, the head of the space division, Jean-Marc Nasr, is set to be dismissed effective March 1.

Despite these challenges, Airbus remains focused on overcoming obstacles and delivering high-quality aircraft to its customers.

 

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