In a sign of ongoing headwinds for the world's largest aircraft manufacturer by deliveries in recent years, Airbus on April 28 reported sharply lower first quarter profits for 2026. The company delivered just 114 commercial jets during the three months ended March 31, a 16% decline from 136 in the year-ago period. The shortfall was attributed largely to continued constraints in the supply of Pratt & Whitney geared turbofan engines for the popular A320neo family.
Revenues for the quarter fell 7 percent to €12.7 billion from €13.5 billion a year earlier. Adjusted earnings before interest and taxes (EBIT) plummeted 52 percent to €300 million from €624 million. Chief Executive Guillaume Faury struck an unusually somber tone when discussing the results with analysts, noting the first quarter was more challenging than in past years. He explained that Airbus is 'suffering' from a significant desynchronization between production and deliveries, which tend to be heavily back-loaded into the second half of the year.
Faury pointed to several contributing factors beyond engines, including panel quality issues, seating shortages, and administrative delays that prevented the handover of nearly 20 aircraft to customers in China. These issues led to substantial inventory buildup, with the company reporting around $5 billion added to stock levels. This drove free cash flow before customer financing deeply negative at -€2.5 billion.
The commercial aircraft segment bore the brunt, with revenues down 11% to €8.4 billion. In contrast, Airbus Helicopters delivered 56 units, up from 51, though revenues were flat at €1.6 billion due to mix. The Defence and Space division performed strongly, with revenues rising 7% to €2.8 billion on higher Air Power volumes and improved profitability.
Despite the weak start, Airbus left its full-year guidance unchanged, targeting approximately 870 commercial aircraft deliveries, around €7.5 billion in adjusted EBIT, and €4.5 billion in free cash flow before customer financing. The company holds a record backlog exceeding 9,000 aircraft, providing long-term visibility. However, Faury acknowledged the complex operating environment, including geopolitical tensions in the Middle East, trade tariffs, and supplier challenges.
Industry analysts noted that Boeing outdelivered Airbus in the quarter, temporarily reclaiming momentum. The persistent Pratt & Whitney engine issues, which have required extensive inspections and shop visits on the GTF fleet, continue to constrain the A320 family ramp-up. Airbus is building aircraft but cannot always deliver them without complete powerplants and interiors.
Faury indicated that delivery rates should improve as the year progresses, with convergence between production and handovers expected by the end of the first half. The company continues heavy R&D investment, including on future programs, while integrating former Spirit AeroSystems work packages. Shares reacted with modest declines as investors digested the numbers but took comfort in the maintained outlook.
The Q1 results underscore the fragility of today's tightly interconnected global aerospace supply chain. Even with strong underlying demand, execution risks remain elevated. Airbus maintains it is on track for its long-term production rate targets, but the first quarter served as a stark reminder of how supplier disruptions, regulatory hurdles, and seasonal delivery patterns can materially impact quarterly financial performance.