Airbus Posts Strong Results for 2021

  • AIR.fr
    (${instrument.percentChange}%)

Financial Results

The European aerospace conglomerate announced today, before European stockmarkets open, strong financial results for the full 2021 year. [1]

Revenue rose to €52.1 billion in 2021, up 4% compared to the previous year, "mainly reflecting the higher number of commercial aircraft deliveries".

Adjusted Profits (EBIT) registered an eye-watering +185% surge form the prior year, to €4.865, while the company posted record Net Income of € 4.213 billion, recovering from the Net Loss of € 1.133 billion in 2020.

These results allowed Airbus to reintroduce dividend payments going forward, proposing a dividend of € 1.50 per share.

The firm delivered 611 commercial aircrafts in 2021 versus 566 in 2020, comprising 50 A220s, 483 A320 Family, 18 A330s, 55 A350s and 5 A380s.

Trade the News: View our Economic Calendar

Airbus also offered strong guidance for 2022, projecting 720 commercial plane deliveries and EBIT Adjusted of € 5.5 billion – both figures being higher than the ones reported today for 2021.

CEO Guillaume Faury, said that "2021 was a year of transition, where our attention shifted from navigating the pandemic towards recovery and growth."

Recent Developments

The European conglomerate has been making a push on the freight business, launching new air-cargo service last month, the Airbus Beluga Transport. The new airline will use the firm's giant Belugas, which are typically used for the transportation of the firm's own large aircraft sections. The Airbus Beluga Transport will have a fleet of five BelugaSTs, whereas Airbus will use six new-generation BelugaXLs for its own needs. [2]

Yesterday, Airbus announced that Etihad Airways has signed a Letter of Intent (LoI) for seven A350F freighters. The plane has a 109 tonne payload capability and generates at least 20% lower fuel consumption and emissions over its current closest competitor. [3]

On the commercial front, the latest news comes from JetBlue Airways, which signed an order for additional 30 A220-300 aircrafts. This takes the airline's firm commitment for the A220-300 to 100 planes. [4]

Not all is rosy though for Airbus, since last month, it terminated the contract for 50 A321s with Qatar Airways [5]. The move came after the airliner had grounded 21 Airbus A350 aircrafts, due to defects. [6]

Competition

US rival Boeing, delivered 357 commercial airplane in 2021, far lower form Airbus' performance. The company still recovers from the tow fatal 737 Max crashes of 2018 and 2019 that had grounded the airplane. [7]

The aircraft has resumed service in the US, while he Civil Aviation Administration of China (CAAC) had released in December an Airworthiness Directive, which outlines actions needed to be taken by airlines, in order to put Boeing's 737 Max in the air again.

Boeing has also been facing problems with the 787 plane, which is reworked in order to resume deliveries and costed the firm $3.5 billion pre-tax non-cash charge in Q4 2021.

Airbus Stock

Air.fr has being having a profitable month so far and can push towards 122.52, but it may be early for moves past 127.00.

Today it drops, despite the firm's solid results and is vulnerable to further pressure, although the area from 110.00 and below has the potential to lend support.

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 17 Feb 2022 https://www.airbus.com/en/newsroom/press-releases/2022-02-airbus-reports-strong-full-year-fy-2021-results

2

Retrieved 17 Feb 2022 https://www.airbus.com/en/newsroom/press-releases/2022-01-airbus-iconic-beluga-super-transporters-ready-to-serve-global

3

Retrieved 17 Feb 2022 https://www.airbus.com/en/newsroom/press-releases/2022-02-new-generation-a350f-freighter-to-join-etihad-airways-fleet

4

Retrieved 17 Feb 2022 https://www.airbus.com/en/newsroom/press-releases/2022-02-jetblue-orders-30-additional-airbus-a220-300-raising-its-firm-order

5

Retrieved 17 Feb 2022 https://twitter.com/AFP/status/1484443055650672641

6

Retrieved 17 Feb 2022 https://www.qatarairways.com/en/press-releases/2022/january/Qatar-Airways-A350-Statement.html

7

Retrieved 09 Dec 2022 https://s2.q4cdn.com/661678649/files/doc_financials/2021/q4/4Q21-Press-Release.pdf

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