Airbus raises A350 output goal as Q3 profits jump 21% at $1.08 bn

Airbus raised a production goal for wide-body A350 jets and reaffirmed financial and delivery targets for 2023 as it posted higher underlying third-quarter profit on Wednesday, with sharply higher jet income dampened by charges in satellites.

The world’s largest planemaker said it was aiming to return to pre-COVID levels of 10 A350 jets a month in 2026, up from a previous goal of nine a month by end-2025. Other industrial targets, including 720 jet deliveries in 2023, were unchanged.

 

Adjusted operating earnings came in at 1.013 billion euros ($1.08 billion) in the quarter, up 21%, as revenues rose 12% to 14,897 billion. Analysts expected earnings of 1.142 billion euros on revenues of 15.098 billion, according to a company-compiled consensus.

 

Airbus said it was seeing strong demand in commercial aircraft, including a continuing rebound in big jets like the A350, but expected the supply chain to remain “challenging”.

 

Production on the company’s main profit-generating programme the Airbus A320 family, is “progressing well” towards a previously announced target of 75 a month in 2026, Airbus said. Industry sources say current production stands in the low 50s.

 

It reaffirmed plans for a restructuring in its defence and space division, where it reported new charges of 300 million euros on “certain satellite development programmes,” without elaborating. That came after 100 million earlier in the year.

 

Risks remain on costs, reliability and production volumes of the A400M military transporter, Airbus said, with some countries reported to be balking at the size of their original orders.