Airbus deliveries fall short and first-quarter profits dive

• Only 5 Gulf plane deliveries in Q1
• Profit down 26%
• In line with expectations

Airbus delivered just five aircraft to Gulf carriers in the first three months of this year, as the European aerospace and defence manufacturer reported a 26 percent fall in profit.

Dubai flag carrier Emirates took delivery of three A350-900s during the period, while neighbouring Etihad Airways received one A350-1000. Saudi low-cost airline Flyadeal was the only other regional carrier to receive an aircraft, taking delivery of a single A320neo. A further two were delivered to leasing companies on behalf of Etihad.

Globally, Airbus handed over 114 aircraft in the first quarter, equal to just 13 percent of its full-year delivery target. The slow start was attributed to supply chain constraints, including defective cabin panels requiring rework and a shortage of engines from manufacturer Pratt & Whitney.

Chief executive Guillaume Faury said both issues were expected to be resolved by the end of the first half. Airbus is targeting 820 commercial aircraft deliveries in 2026.

“That is completely in line with our expectations,” he said on an earnings call on Tuesday. “We knew the year would be very back-end loaded.”

The company’s total order backlog rose above 9,000 aircraft in the first quarter, underlining sustained long-term demand despite near-term manufacturing pressures.

Gulf carriers accounted for 573 outstanding Airbus orders at the end of March. Saudi Arabia represented the largest share of the regional pipeline, with Saudia holding 138 aircraft on order, Flynas a further 144 and startup Riyadh Air awaiting the delivery of 85 aircraft.

The delayed deliveries weighed heavily on the manufacturer’s bottom line over Q1. Revenue fell from €13.54 billion ($15.8 billion) to €12.65 billion ($14.81 billion) year on year. 

• Iran war lifts business for Dubai-based cargo carrier SolitAir
• Kuwaiti airlines resume limited service as airport reopens
• Iran conflict dents traffic at Oman’s busiest airport

Faury said the company is yet to feel the ill effects of the Iran conflict, but admitted it is a situation it is “monitoring closely”.

“We don’t see today any [order] cancellation nor postponements,” he said. “We see airlines reducing the number of flights, sometimes cancelling flights, sometimes going a bit further and reducing the intensity of the network. But what we do see is they absolutely need to have the most fuel efficient aircraft to continue to fly because that limits the impact of the price for jet fuel.”

A jet fuel monitor run by the International Air Transport Association, using S&P Global Platts data, showed the global average price stood at $185 a barrel last week, after rising above $200 a barrel earlier this month. It was around $100 a barrel before the conflict began.

According to the Airbus website, the A350 uses 25 percent less fuel and produces 25 percent lower CO2 emissions than previous-generation large widebody jets such as older Boeing 777-200ER and Boeing 777-300ER models.