By Dayna Fedy-MacDonald | February 16, 2023 Estimated reading time 5 minutes, 39 seconds.
Airbus on Feb. 16 shared its financial results for the full year of 2022, reporting that the company had “solid financials, despite an adverse operating environment that prevented our supply chain from recovering at the pace we expected.”
The airframe manufacturer’s consolidated revenues were up 13 percent in 2022 to US$62.7 billion, compared to US$55.6 billion in 2021. In the fourth quarter alone, Airbus reported US$29.6 billion in consolidated revenues.
Commercial aircraft revenues, specifically, were up 15 percent year-on-year, thanks to an increase in deliveries over 2021. Airbus delivered a total of 661 commercial aircraft — up from 611 in 2021 — comprised of 53 A220s, 516 A320 family aircraft, 32 A330s, and 60 A350s.
However, Airbus’s commercial aircraft deliveries for 2022 were still lower than planned, Airbus CEO Guillaume Faury said. That was thanks to supply chain constraints, which forced the manufacturer to “adjust its operations accordingly.”
Airbus Defence and Space revenues increased 11 percent, “mainly driven by higher volume in military aircraft” and the company’s Eurodrone unmanned aerial system. Airbus Defence delivered 10 A400M airlifters in 2022, compared to eight in 2021.
The company’s net book-to-bill ratio is sitting above 1 both in units and value, which is positive as the OEM progresses through 2023. Gross commercial aircraft orders increased to 1,078, from 771 in 2021, with net orders of 820 aircraft after cancellations (507 in 2021). Airbus Defence and Space’s order intake by value was US$14.6 billion, on par with 2021, translating to a book-to-bill of around 1.2.
The company’s earnings before interest and taxes (EBIT) amounted to US$5,678 million, down from US$5,694 million in 2021, which includes net adjustments of US$ -322 million. (Find the list of adjustments in Airbus’s full report.) Consolidated free cash flow was US$4,609 million, up from US$3,742 million in 2021.
As part of its outlook for 2023, Airbus said it “assumes 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.”
Based on these assumptions, Airbus is targeting roughly 720 commercial aircraft deliveries, EBIT adjusted of US$6.4 billion, and free cash flow — before M&A and customer financing — of US$3.2 billion.
In order to reach these targets, the OEM has begun ramping up production of a number of its aircraft, which will continue over the next few years.
At the end of 2022, Airbus increased the monthly production rate of the A330 to three aircraft, as planned, and the company is targeting four aircraft per month in 2024. The A350 monthly production rate has now reached six aircraft, however, Airbus is aiming to ramp up to nine A350s per month by the end of 2025. The company said this increased production rate is in response to “growing demand for widebody aircraft as international air travel recovers,” as well as results from a feasibility study with the supply chain.
As for the A320 family, Airbus has adjusted the ramp-up trajectory with suppliers. “The company is now progressing towards a monthly production rate of 65 aircraft by the end of 2024, and 75 in 2026,” Airbus said.
Moreover, entry-into-service of the new A321XLR (“Xtra Long Range”) aircraft is expected to take place in the second quarter of 2024, according to Airbus. The single-aisle A321XLR — which has greater range and lower fuel consumption compared to its predecessors — achieved its first flight in June 2022, and subsequently started its flight test campaign. Airbus says the aircraft is on track to receive type certification this year.
As of the end of June 2022, orders for the A321XLR stood at 500, from more than 20 customers.
Find Airbus’s full-year 2022 financial results report here.
