Airbus upgrades guidance after flying higher in first half

Airbus reported a 30% rise in revenue for its first half on Thursday, to €24.6bn (£20.94bn), which it put down to a higher number of commercial aircraft deliveries compared to the first six months of 2020.

The European aviation giant said it delivered 297 commercial aircraft in the period, while its consolidated adjusted EBIT improved to a positive €2.7bn, from a negative €945m a year ago.

It said free cash flow before mergers and acquisitions and customer financing totalled €2.1bn, as its focus in the period was on securing a ramp-up for the A320 aircraft family, and “transforming” its industrial value chain.

The board also approved a freighter derivative of the A350 aircraft, Airbus said.

Airbus also updated its guidance for the full year, saying that assuming no further economic or operational disruptions, it would deliver 600 commercial aircraft by year-end, with adjusted EBIT coming in at €4bn, while free cash flow before mergers and acquisitions and customer financing was anticipated to be €2bn.

“These half-year results reflect the commercial aircraft deliveries, our focus on cost containment and competitiveness, and the good performance in helicopters, and defence and space.” said chief executive officer Guillaume Faury.

“Although the Covid-19 pandemic continues, the numerous actions taken by the teams have delivered a strong first half performance.”

That, Faury said, enabled the company to raise its 2021 guidance even though it was still facing an “unpredictable” environment.

“We are now working to secure the A320 family ramp-up while transforming the industrial set up.

“Furthermore and following board approval, we are enhancing our product line with an A350 freighter derivative, responding to customer feedback for increased competition and efficiency in this market segment.”