Airbus Q3 Still Affected By A320 Engine Issue

Airbus reported a jump in third quarter net profit to EUR€348 million (USD$404 million), mainly driven by positive foreign exchange effects.

Q3 pre-tax earnings dropped 4 percent to €697 million on revenues up 2 percent to €14.24 billion. Of that increase, commercial aircraft accounted for revenue of €10.85 billion, a 4 percent increase.

In the nine months to the end of September, total revenue edged up 1 percent to €42.95 billion, with pre-tax earnings coming in at €1.77 billion, a 25 percent dip on 2016.

Commercial aircraft deliveries totalled 454, down from 2016’s 462, comprising 350 A320-family, 50 A350s, 45 A330s and nine A380s.

Airbus said the ramp up in A350 production is on track to meet the monthly production target of 10 aircraft by the end of next year.

The A320neo ramp-up, however, “remains challenging with the delivery profile very much loaded into the fourth quarter,” Airbus said, with priority being given to engine deliveries to be used for spares.

Airbus initially targeted 200 A320neo deliveries for 2017, but the Pratt & Whitney PW1000G engine availability issue means deliveries are now expected to be slightly below the target.

Commercial aircraft orders totalled €50.8 billion in the nine months, down from 2016’s €73.2 billion, with 271 net orders taken.

Airbus said it expects to deliver over 700 commercial aircraft in the full year, depending on engine manufacturers meeting commitments. It expects mid-single-digit percentage growth in adjusted EBIT and adjusted EPS compared to 2016.

“We confirm our outlook even though this year’s delivery schedule is extremely back-loaded, largely due to the well-known engine problems plaguing our A320neo family,” chief executive Tom Enders said.