Airbus reports ‘grisly’ quarter as it runs out of engines for jets

SUPPLY and delivery problems affecting its smaller aeroplanes have clobbered Airbus in the first three months of the year, resulting in what analysts called a “grisly” quarter. The manufacturing giant handed over 121 aircraft during the three months – 15 fewer than last time around – due to problems related to advanced engines for its bestselling A320neo small airliner.

Sales dipped 11.6pc to €10.2bn (£8.9bn), while profit was a third lower at €283m in the three months.

“The financial performance reflects the shortage of A320neo engines and backloaded aircraft deliveries,” said Tom Enders, the chief executive.

Problems with new engines built by Pratt & Whitney and CFM for the A320neo mean that there is a shortage of jets to bolt on to planes. As a result engineless A320neos are dotted around the airfield at the company’s Toulouse headquarters.

The engine manufacturers are ironing out the problems but the delays with the jets have weighed heavily on Airbus. “It’s a challenging situation for all, but based on the confidence expressed by the engine makers and their ability to deliver on commitments, we can confirm our full-year outlook,” Mr Enders said.

He added that Airbus and its engine suppliers were “committed” to the company delivering 800 airliners in the full year, but noted that this “leaves a lot to do in the second half ”.

Deliveries of the company’s latest jet, the A350, accelerated during the quarter and Airbus now aims to build 10 per month by the year-end.

Sandy Morris, the Jefferies analyst, said: “We knew the first quarter was going to be grisly – and it is.” Airbus shares closed up 1.5pc at €96.93.