Airbus Warns "Supply Chain Remains Fragile" As Revenues Increase

Multinational European manufacturer Airbus has become the latest giant of the commercial aviation industry to post its financial results for the third quarter of the year. While the company’s revenues have seen year-on-year growth, it is still wary of the fragile situation when it comes to the supply chain, with multiple factors at play.

The key figures

A report outlining Airbus’s Q3 results for 2022 has revealed varying degrees of growth across all of its divisions. The manufacturer’s revenues as a whole for the quarter amounted to €13.309 billion ($13.236 billion), representing a 27% increase compared to the €10.518 billion that it generated in the third quarter of 2021.

The company’s net income and earnings per share saw particularly large increases, growing by 65% (€404 million to €667 million) and 67% (€0.51 to €0.85) respectively compared to Q3 last year. The commercial division accounted for most of Airbus’s Q3 revenues (€9.121 billion), with this segment having grown 34% year-on-year.

That being said, the other sectors also played key roles, with revenue increases to be seen across the board. Indeed, Airbus Helicopters’ revenues went up by a margin of 15% (from €1.543 billion to €1.771 billion), while Airbus Defence & Space saw a healthy 8% increase (€2.343 billion to €2.537 billion) in this regard.

Photo: Airbus

Still facing certain difficulties

While Airbus was able to post strong results for the third quarter of 2022 (and, indeed, the year as a whole thus far), it is still having to deal with, as CEO Guillaume Faury describes it, “a complex operating environment.” He added that:

“The supply chain remains fragile, resulting from the cumulative impact of COVID, the war in Ukraine, energy supply issues and constrained labor markets.”

Nonetheless, despite facing such multi-faceted challenges, Airbus has been able to maintain its earning and delivery targets, as far as the commercial aircraft division of the European manufacturer is concerned. Going forward, Faury states that:

“Our teams are focused on our key priorities, and, in particular, delivering the commercial aircraft ramp-up over the coming months and years.”

Photo: Airbus

Why have Airbus’s Q3 revenues risen?

With Airbus having grown its Q3 revenues by more than a quarter compared to last year, it is worth looking at why this is the case. As it happens, the complex operating environment that is providing Airbus with challenges has also resulted in several different factors in terms of revenue growth. The company explains:

“Q3 2022 revenues increased by 27% to € 13.309 million, mainly reflecting higher commercial aircraft deliveries, including a favorable mix, higher contributions from Airbus Defence & Space and Airbus Helicopters, and the appreciation of the US dollar.”

When it comes to commercial deliveries, Airbus has certainly had a few exciting examples of these in recent weeks. These have included its 100th US-manufactured Delta Air Lines jet, and Air China’s 20th A350-900. Perhaps the most exciting, however, was Virgin Atlantic’s first A330neo, which entered service yesterday.

How do you interpret Airbus’s third-quarter results? What do you think the rest of 2022 will have in store for the multinational European manufacturer? Let us know your thoughts in the comments!