Profits soar at Airbus thanks to return of international travel
Airplane manufacturer Airbus saw its earnings increase by 16% to just under £5bn.
The company, which has bases in Broughton, near Chester, and the South West, said it delivered 661 commercial aircraft last year.
It employs more than 3,000 people at its factory in Filton, South Gloucestershire, where wings and landing gear are designed.
In Broughton, it employs around 4,500 staff where it makes wings for all the group’s commercial aircraft. Earlier this week it announced an extra 450 jobs and £100m investment at Broughton on the back of a 250-plane order from Air India.
Thanks to the recovery in the international aviation industry the company had a busy year which resulted in revenues of £51.5bn.
Guillaume Faury, Airbus chief executive, said: “The industry continued its recovery during 2022, with air traffic increasing and airlines turning to their long-term fleet planning.
“We delivered solid financials despite an adverse operating environment that prevented our supply chain from recovering at the pace we expected.
“The company had to adjust its operations accordingly, which led to lower commercial aircraft deliveries than originally planned. We are adapting our production to match supply,”
He added: “As we move forward in 2023 we are focused on our industrial activities and the longer-term transformation of the company. The solid 2022 financial performance and our confidence in the future lead us to propose a higher dividend payment this year.”
Gross commercial aircraft orders increased to 1,078, with net orders of 820 aircraft after cancellations.
The order backlog currently stands at 7,239 commercial aircraft at the end of 2022.
Airbus Defence and Space’s division had orders worth £12.8bn. Key orders included Demonstrator Phase 1B of the Future Combat Air System, the Eurodrone unmanned aerial system and 20 latest-generation Eurofighters for the Spanish Air Force.
Airbus is moving towards a monthly production rate of 65 A3220 aircraft by the end of 2024 and 75 in 2026.
The A330 monthly production rate increased to around three at the end of 2022 as planned and the company is planning to reach four a month in 2024.
EBIT adjusted at Airbus Defence and Space decreased to £341m, mainly reflecting the impairment related to the loss of two Pleiades Neo satellites in December and to delays on the Ariane 6 launcher, as well as the impact of rising inflation.
This was partly offset by higher volume in military aircraft, the ramp-up in Eurodrone and the positive impact related to retirement obligations in the first quarter.
Airbus is assuming there will be no additional disruptions to the world economy, air traffic, the supply chain, the company’s internal operations, and its ability to deliver products and services.
On that basis the company is expecting to deliver 720 commercial aircraft resulting in profits of £5.3bn.