Airbus profits slump as engine shortages and lower deliveries weigh on Q1 performance

April 29, 2026 in Companies, Trade & Industry, Transport, Travel & Tourism by Editor

Airbus’ first-quarter 2026 profits fell sharply as lower aircraft deliveries and persistent Pratt & Whitney engine shortages weighed on its commercial aircraft business, despite strong defence growth and a near doubling of new aircraft orders.

 

European aircraft manufacturer Airbus posted a sharp decline in first-quarter earnings for 2026, as fewer commercial aircraft deliveries and persistent supply chain disruptions—particularly shortages of Pratt & Whitney engines—dragged down profitability despite strong demand and a solid performance from its defence business.

The company reported consolidated revenues of €12.7 billion for the three months ended March 31, down 7 percent from €13.5 billion in the same period last year. EBIT Adjusted, Airbus’ preferred measure of underlying operating performance, fell 52 percent to €300 million from €624 million, while reported net income declined 26 percent to €586 million.

Chief Executive Officer Guillaume Faury said the results reflected a difficult but manageable operating environment.

“The Q1 results reflect the lower level of commercial aircraft deliveries and a strong performance in our Defence and Space division. The operating environment remains dynamic and complex,” Faury said, noting that Airbus was also closely monitoring the fast-changing geopolitical situation in the Middle East.

The aerospace giant delivered 114 commercial aircraft during the quarter, down from 136 in Q1 2025. These included 19 A220s, 81 A320 Family aircraft, three A330s and 11 A350s.

The lower delivery volumes pushed revenues from Airbus’ commercial aircraft division down 11 percent to €8.4 billion, while EBIT Adjusted for the segment plunged to just €81 million from €494 million a year earlier.

Airbus said the main constraint continues to be engine supply shortages from Pratt & Whitney, which are slowing the production ramp-up of the A320 Family programme.

The manufacturer said it still expects to reach a production rate of between 70 and 75 A320 Family aircraft per month by the end of 2027, before stabilising at 75 aircraft monthly. It also maintained its target of producing 13 A220 aircraft per month by 2028.

Despite weaker earnings, customer demand remained robust. Gross commercial aircraft orders rose to 408 aircraft from 280 a year earlier, while net orders nearly doubled to 398 aircraft after cancellations. Airbus’ total commercial aircraft backlog now stands at 9,037 aircraft, underlining continued global demand for new-generation fuel-efficient fleets.

Its Defence and Space division provided a major cushion during the quarter, with revenues rising 7 percent year-on-year to €2.8 billion. EBIT Adjusted for the segment climbed 69 percent to €130 million, supported by stronger profitability across all business units and rising global defence demand.

Order intake by value in Defence and Space nearly doubled to €5 billion from €2.6 billion, largely driven by the Air Power business unit.

Airbus Helicopters remained broadly stable, posting revenues of €1.6 billion with deliveries increasing slightly to 56 units from 51. However, EBIT Adjusted slipped to €65 million from €78 million due to higher research and development spending.

The group’s free cash flow position, however, deteriorated sharply. Free cash flow before customer financing fell to negative €2.5 billion compared to negative €310 million in the same quarter last year. Airbus attributed this mainly to the lower delivery levels and planned inventory build-up linked to production ramp-ups across programmes.

Its gross cash position stood at €25.2 billion at the end of March, down from €27.2 billion at the end of 2025, while net cash declined 19 percent to €9.8 billion.

Even with the weak start to the year, Airbus left its full-year 2026 guidance unchanged, signalling confidence that production will improve in the coming quarters.

The company is still targeting around 870 commercial aircraft deliveries for the year, EBIT Adjusted of around €7.5 billion and free cash flow before customer financing of about €4.5 billion.

Analysts say the maintained guidance suggests Airbus expects supplier bottlenecks to ease gradually, though risks remain elevated due to global trade tensions, tariff uncertainties and geopolitical instability.

The company said its outlook assumes no additional disruptions to global trade, air traffic, supply chains or internal operations and already factors in the impact of currently applicable tariffs.

With its order book stretching years into the future, Airbus remains one of the strongest barometers of global airline confidence. But the first quarter results show that even strong demand cannot fully offset production constraints in an industry still navigating post-pandemic supply chain realities.