Airbus sees profit boost, but defense and space challenges

Airbus is urging stepped-up European cooperation to ensure the continent’s security and future access to space after a year that saw the company suffer fallout from Russia’s war in Ukraine and the crash of a European satellite launcher. The France-based plane maker on Thursday reported a record overall 2022 profit of E4.25b ($4.55b), up from 4.21b euros the year before, despite inflation challenges and supply chain disruptions that slowed efforts to ramp up aircraft production. CEO Guillaume Faury said the company aims to deliver 720 planes this year, up from 661 last year, in an effort to keep up with growing demand by airlines as travel picks up worldwide following COVID-19 disruptions. On Tuesday, Air India unveiled an massive order that included 250 Airbus passenger jets. Airbus didn’t disclose financial terms of the deal, which could be worth tens of billions of dollars. Airbus took in 820 orders in 2022 and reported revenue of E58.8b ($63b). US rival Boeing has lagged behind Airbus in deliveries but has been closing the gap, reporting 774 orders and 480 deliveries last year. Both companies are struggling with shortages of engines and other supply chain issues that limit how fast they can build and deliver planes. Those supply issues have overshadowed what is otherwise a rebounding market for aircraft, said Richard Aboulafia, managing director at consultancy AeroDynamic Advisory. Demand has been supported by the travel recovery from the worst of the pandemic, a spike in fuel prices that put a premium on newer, more efficient aircraft, and the need for smaller, single-aisle aircraft flying point to point such as the Airbus A-321. “It’s nothing to do with markets and everything to do with supply,” Aboulafia said. “The market’s fine — it’s just a question of what supply can bear.”<br/>