By Mauro Orru


Airbus posted higher revenue and profit for the first quarter, backed its goal to deliver more planes this year than in 2023 and decided to increase production of its A350 wide-body jets, extending its lead over beleaguered rival Boeing.

The European plane maker confirmed its target to deliver about 800 commercial aircraft to customers this year, more than the 735 planes it dispatched in 2023.

Airbus's optimism that deliveries will keep growing comes as Boeing grapples with the fallout from an Alaska Airlines emergency landing in January after a section of the aircraft ripped away in midair, prompting a temporary grounding and immediate inspections of Boeing 737 MAX jets.

Airbus handed 142 planes to customers in the first quarter, up nearly 12% on year. Boeing, on the other hand, delivered just 83, a 36% drop from a year ago.

The American company, under pressure from airlines and regulators to ensure safety and quality in its production processes, reported a net loss and declining revenue in the first quarter, showing diverging fortunes with Airbus.

Airbus shares are up nearly 14% since January. In contrast, Boeing shares are down more than 38%. Meanwhile, Airbus secured 170 net orders since the year began compared with 125 for Boeing.

During the quarter, Boeing slowed production of its 737 program below 38 aircraft per month to improve quality controls. The decision comes as airlines are still scrambling for planes to meet strong demand for international air travel following the pandemic.

Airbus, for its part, said it continues to expect to produce 75 of its A320 narrow-body aircraft a month in 2026. On the A330 wide-body, it is still aiming for four a month in 2024, but it decided to increase production of its bigger A350 model to 12 aircraft a month in 2028 compared with a previous goal of 10 a month in 2026.

"The strong momentum on wide-body aircraft underpins our decision to increase the production rate," said Chief Executive Guillaume Faury.

The adjustment comes despite months of supply-chain hurdles that have made it harder to procure some raw materials and spare parts, slowing aircraft manufacturing processes. Faury said that geopolitical and supply-chain tensions are continuing.

Airbus posted revenue of 12.83 billion euros ($13.73 billion) for the January-through-March quarter, up 9% on year.

Net profit climbed 28% to EUR595 million, though adjusted earnings before interest and taxes--Airbus's preferred measure of profitability--fell 25% to EUR577 million.

Analysts had forecast revenue of EUR12.87 billion on a net profit of EUR631 million and adjusted EBIT of EUR789 million, according to a market consensus provided by the company based on estimates from 18 analysts.

For 2024, Airbus said it continues to expect adjusted EBIT between EUR6.5 billion and EUR7 billion. Free cash flow before customer financing--a closely watched metric by analysts and investors--is projected at around EUR4 billion.


Write to Mauro Orru at mauro.orru@wsj.com


(END) Dow Jones Newswires

04-25-24 1241ET