Frankfurt Record numbers in the second year of the pandemic, a bulging order book – Airbus boss Guillaume Faury is satisfied. “2021 was really remarkable,” said the manager on Thursday morning when presenting the figures for the 2021 financial year. “And we have a lot planned for 2022.”
The numbers of the past year 2021 provide Faury, who will be 54 years old in a few days, with tailwind for these plans. The European group was able to achieve the highest profit in the company’s history. It skyrocketed to €4.2 billion after a €1.1 billion loss in 2020.
In 2019 and 2020, Airbus had to cope with a fine for allegations of corruption and the cost of cutting thousands of jobs.
After two zero rounds, the shareholders should also benefit from the record profit. Management proposes paying out EUR 1.50 per share. Sales increased from almost 50 to 52.1 billion euros. In the current year, the group wants to deliver around 720 commercial aircraft – after 611 last year. Earnings before interest, taxes and special effects (adjusted EBIT) should reach 5.5 billion euros.
Top jobs of the day
Find the best jobs now and
be notified by email.
But in the eyes of investors, the good numbers could not hide the fact that Faury and his team still have many hurdles to overcome. The shares that have recently been listed in the Dax fell by around 1.5 percent in the morning, a little more than the index as a whole.
On the one hand, there are the production targets for the A320 family, the successful short and medium-haul jet. By the summer of next year, the production rate is to be increased from 40 to 65 aircraft per month. After that, that number could increase further to 70 to 75 aircraft per month – a level never seen before. “I think we’ll be able to give more details in the middle of the year,” said Faury. Demand is stronger than previously expected.
Bottlenecks at supplier companies threaten
The problem is with the suppliers: large partners such as Munich-based engine specialist MTU Aero Engines do not see any major difficulties with the planned ramp-up. “We don’t currently have any faults, but there are always a few smaller suppliers who have problems here,” explained MTU boss Reiner Winkler on Wednesday.
Domhnal Slattery, head of the aircraft leasing company Avolon, therefore expects delays in production. Even if the demand is there, it’s about the ability to actually deliver, he said a few days ago at an aircraft show in Singapore.
Faury therefore acknowledged possible problems when starting up. The supplier companies would first have to deal with the consequences of the severe crisis. In addition, there would be “challenges” due to bottlenecks in materials and in the supply chain, as well as the issue of inflation.
>> Read about this: Airbus and IG Metall agree on restructuring plan – strikes averted
At the same time, Airbus is pushing into the large-capacity freighter business, which has so far been dominated by rival Boeing. Air freight is booming, and Airbus will be launching a freighter version of the A350 passenger jet here in the future. Etihad Airways signed a letter of intent for seven A350Fs on Wednesday. But here, too, production must now be set up and ramped up.
At the same time, Airbus management has begun to consolidate its own suppliers and reduce complexity. Representatives of the company and the IG Metall trade union recently agreed to set up a new company in Germany on July 1, in which the hitherto scattered construction of components will be bundled. For the production of the upstream individual parts of the supplier subsidiary Premium Aerotec with locations in Augsburg, Varel and Romania, Airbus wants to examine a takeover offer from the German family company Muhr und Bender (Mubea) together with the employee representatives.
According to Faury, this process is ongoing: “It is important for our goal of delivering sustainable aircraft.” At the same time, the Airbus boss promised to bring the first hydrogen-powered aircraft onto the market as early as 2035. However, experts consider this timetable to be very ambitious.
“We have a lot planned for 2022.”
(Photo: Getty Images)
On the other hand, Faury relativized statements about considerations of wanting to get involved in the construction of aircraft engines. This is currently causing debates in the industry. “I didn’t say that we would change our strategy,” said Faury. Nor did he say that Airbus wanted to become a manufacturer of aircraft engines. He was only asked whether the company was fundamentally capable of doing so. He said yes. “We have enough on the plan that we have to take care of right now,” said Faury.
The case shows how much unrest is currently plaguing the aviation industry. Everyone is currently talking to everyone, MTU boss Winkler said on Wednesday. In view of this, Faury tried on Thursday to at least put an end to speculation about a possible spin-off of the armaments division. The Reuters news agency reported on this, citing investors’ growing reluctance to invest in armaments companies.
Speculations about the future of the armaments division
“We are convinced that defense contributes to stability and peace and is more important than ever these days,” said Faury. One is currently in close contact with stakeholders and politicians to convince them that defense must be viewed positively. There is “movement,” said Faury.
Separating from the arms business or looking for a co-investor would be a huge challenge. In 2012, Airbus – the group was still trading under the name EADS at the time – tried to merge the division with the British armaments company BAE Systems – and was unsuccessful in politics. Germany and France each hold almost eleven percent of the group, Spain holds a good four percent. Without the consent of these shareholders, such a serious step is impossible.
More: Will Airbus build its own engines in the future? Supplier MTU is relaxed about the considerations