Airbus has reported improved financial results for its first quarter (Q1) ended 31 March 2021. Consolidated revenueswere broadly stable year-on-year at €10.5bn compared to €10.6bn in Q1 2020.
“The good Q1 results mainly reflect our commercial aircraft delivery performance, cost and cash containment, progress with the restructuring plan as well as positive contributions from our helicopter and defence and space activities,” said Airbus Chief Executive Officer Guillaume Faury. “The first quarter shows that the crisis is not yet over for our industry, and that the market remains uncertain. We are investing in innovation and in the transformation of our Company to deliver on our long-term ambitions across the portfolio.”
Gross commercial aircraft orders totalled 39 (Q1 2020: 356 aircraft) and included 38 single-aisle aircraft. After cancellations, net commercial aircraft orders were down 61 (Q1 2020: 290 aircraft) with the order backlog comprising 6,998 aircraft on 31 March 2021. Airbus Helicopters booked 40 net orders (Q1 2020: 54 units), including 2 Super Puma Family rotorcraft and 1 H160. Airbus Defence and Space’s order intake by value was € 2.0 billion (Q1 2020: € 1.7 billion) and included major contract wins in Space Systems and recurring services orders in Military Aircraft.
A total of 125 commercial aircraft were delivered (Q1 2020: 122 aircraft), comprising 9 A220s, 105 A320 Family, 1 A330 and 10 A350s. Revenues generated by Airbus’ commercial aircraft activities decreased by 4 percent, mainly reflecting lower volume in services. Airbus Helicopters delivered 39 units (Q1 2020: 47 units) with revenues reflecting lower volume in civil helicopters, partly offset by growth in services. Revenues at Airbus Defence and Space were stable compared to a year earlier.
Consolidated EBIT Adjusted increased to € 694 million (Q1 2020: € 281 million). The EBIT Adjusted related to Airbus’ commercial aircraft activities increased to € 533 million (Q1 2020: € 191 million), mainly reflecting the focus on cost as well as a favourable mix. It also includes a positive impact from currency hedging.
Consolidated EBIT (reported) amounted to € 462 million (Q1 2020: € 79 million), including Adjustments totalling a net €-232 million.
The adjustments comprised: €-29 million related to A380 programme cost; €-177 million related to the dollar pre-delivery payment mismatch and balance sheet revaluation; and €-26 million of other costs, including compliance.
The financial result was €59 million (Q1 2020: €-477 million). It mainly reflects the revaluation of financial instruments and the evolution of the US dollar as well as €43 million from the revaluation of the Dassault Aviation equity stake, partly reduced by the net interest result of € -82 million. Consolidated net income was €362 million (Q1 2020 net loss: €-481 million) with consolidated reported earnings per share of €0.46 (Q1 2020 loss per share: € -0.61).
The consolidated net cash position was €5.6 billion on 31 March 2021 (year-end 2020: € 4.3 billion) with a gross cash position of € 22.6 billion (year-end 2020: € 21.4 billion).
Airbus says that its liquidity position remains strong and that the maturity of the Supplemental Liquidity Line has been extended by six months, maintaining a high level of flexibility in the uncertain environment caused by COVID-19.
As the basis for its 2021 guidance, Airbus assumes no further disruptions to the world economy, air traffic, or its internal operations, and its ability to deliver products and services. On that basis, Airbus targets to at least achieve the same number of commercial aircraft deliveries in 2021 as in 2020; with an EBIT Adjusted of €2 billion and breakeven free cash flow before M&A and customer financing.