Yahoo Finance Airbus to deliver more planes as it reports €4bn profit
European aircraft giant Airbus (AIR.PA) posted record profits in 2021 and restored its dividend, after two years of losses during the COVID pandemic.
The plane-maker reported a net income for 2021 of €4.2bn (£3.5bn/$4.7bn) with deliveries of aircraft rising 8% to 611 planes.
Optimistic on a sustained rebound in the aviation industry, Airbus also raised its delivery forecast for the coming year, saying it expected to dispatch 720 commercial aircrafts.
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Those orders included the first for the A350 freighter “confirming customer demand for this new programme.” Airbus said.
The group’s adjusted operating profit jumped to €4.86bn from €1.7bn a year earlier. Revenues rose 4% to €52.1bn, reflecting a higher number of commercial aircraft deliveries.
On the back of the strong results, the Toulouse-headquartered company also restarted its dividend for the first time in two years. Airbus said it would propose a dividend of €1.5 a share.
"2021 was a year of transition, where our attention shifted from navigating the pandemic towards recovery and growth," Airbus chief executive Guillaume Faury said in the earning statement.
"Thanks to the resilience and efforts of our teams, customers and suppliers, we delivered remarkable full-year results," he said.
The aerospace industry was one of the worst affected by the pandemic as travel restrictions all but grounded commercial aviation and airlines cancelled orders for new planes.
Airbus cut 15,000 jobs in June 2020, including at its UK factory in north Wales, which makes wings.
Despite the strong rebound, Faury cautioned the “pandemic is not yet behind us”.
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In its guidance for 2022, Airbus said it "assumes no further disruptions to the world economy, air traffic, the company's internal operations, and its ability to deliver products and services.”
Allegra Dawes, a senior analyst at Third Bridge investment group, said she expected Airbus to “dominate the crucial narrow body market in the coming years as the 737 Max trails Airbus’s offerings in both capability and orders”.
She added: “Investors will be watching the progress Airbus has made towards achieving its ambitious targets for production ramp up over the coming years. The company has called on suppliers to prepare for a production rate of 70 A320 aircraft per month by 2024. It will be a significant challenge for a weakened supply chain.”
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