Airbus Q1 Profits Plunge 52% Amid Supply Chain Bottlenecks

Airbus saw its adjusted operating profit collapse by 52% in the first quarter, falling to 300 million euros from 624 million euros in the prior-year period. The decline was primarily driven by a slowdown in the delivery of the company's most popular aircraft models, with only 114 commercial aircraft delivered compared to 136 a year ago. While total sales of 12.65 billion euros slightly exceeded analyst expectations, the operating profit fell significantly short of the 378 million euros forecast by FactSet. Earnings per share stood at 74 euro cents, beating the 44 euro cents expected by analysts. Despite these figures, total revenue for the quarter declined by 7%. The company reiterated its 2026 delivery target of 870 aircraft, a figure that remains below the 880 units anticipated by market analysts. CEO Guillaume Faury attributed the shortfall to ongoing engine shortages caused by issues at supplier Pratt & Whitney. However, demand remains robust, with gross commercial aircraft orders surging 46% to 408 units. This financial downturn comes as Airbus faces renewed competitive pressure from rival Boeing, which is currently executing a turnaround following a series of quality and production crises. While Airbus's defense and space division grew by 7%, the core commercial aircraft unit saw sales slide by 11%, reflecting the impact of the current supply chain constraints.