Video: Boeing Chairman, President and CEO Dennis Muilenburg delivers his chairmanโs report at Boeingโs annual meeting of shareholders on April 29, 2019.
Airbus reports its first quarter 2019 results
Airbus SE (stock exchange symbol: AIR) reported First Quarter (Q1) 2019 consolidated financial results(1) and maintained its guidance for the full-year.
โThe first quarter underlying financials mainly reflect our commercial aircraft ramp-up and delivery phasing,โ said Airbus Chief Executive Officer Guillaume Faury. โThe commercial aircraft market remains robust and we continue to see good prospects in the helicopters and defence and space businesses. The new management team is in place and focused on delivering on our commitments.โ
Gross commercial aircraft orders totalled 62 (Q1 2018: 68 aircraft) and included 38 A350 XWBs. Net commercial aircraft orders of -58 (Q1 2018: 45 aircraft) after 120 cancellations mainly reflect the winding down of the A380 programme and the commercial agreement with Etihad as communicated in the Full-Year 2018 disclosure. The commercial aircraft backlog stood at 7,357 aircraft as of 31 March 2019. Net helicopter orders of 66 units (Q1 2018: 104 units) included 20 Super Puma Family and 16 H145s. Airbus Defence and Spaceโs order intake by value totalledย โฌ 1.1 billion.
Consolidated revenues increased to โฌ 12.5 billion (Q1 2018: โฌ 10.1 billion), mainly reflecting the higher commercial aircraft deliveries as the production ramp-up continued. At Airbus, a total of 162 commercial aircraft were delivered (Q1 2018: 121 aircraft), comprising 8 A220s, 126 A320 Family, 5 A330s, 22 A350s and 1 A380. Airbus Helicopters delivered 46 units (Q1 2018: 52 units) with increased revenues reflecting the higher volume in services. Revenues at Airbus Defence and Space reflected the overall stable business performance.
Consolidated EBIT Adjusted โ an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructurings or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses โ increased strongly to โฌ 549 million (Q1 2018: โฌ 14 million), driven by Airbus.
Airbusโ EBIT Adjusted improved to โฌ 536 million (Q1 2018: โฌ -41 million), mainly reflecting the A320neo ramp-up and premium as well as further progress on the A350 financial performance.
A total of 96 A320neo Family aircraft were delivered in the quarter. The ramp-up of the Airbus Cabin Flex version of the A321 continued in Q1 but remains challenging. Airbus is working to improve execution in its internal industrial systems and monitoring engine performance. The overall A320 Family programme is on track to reach 60 aircraft per month by mid-2019 and preparing for rate 63 in 2021. On the A330 programme, 5 aircraft were delivered in the first quarter, including 3 NEOs. A330neo deliveries continue to ramp-up and Airbus is working closely with its engine partner and suppliers to deliver in line with customer commitments. The flight test campaign of the A330-800 variant is progressing.
Airbus Helicoptersโ EBIT Adjusted totalled โฌ 15 million (Q1 2018: โฌ -3 million), reflecting lower deliveries and higher volume in services.
Airbus Defence and Spaceโs EBIT Adjusted of โฌ 101 million (Q1 2018: โฌ 112 million) reflected the Divisionโs overall stable business performance.
One A400M military transport aircraft was delivered in the first quarter, bringing the in-service fleet to 75 aircraft. Development activities continued as agreed in the revised capability roadmap, with certification flights successfully completed for the Cargo Hold Tanks refuelling unit in the first quarter. A400M retrofit activities are progressing in line with the customer agreed plan. Theย approval process of the Contract Amendment is progressing.
Consolidated self-financed R&D expenses totalled โฌ 654 million (Q1 2018: โฌ 616 million).
Consolidated EBIT (reported) amounted to โฌ 181 million (Q1 2018: โฌ 199 million), including Adjustments totalling a net โฌ -368 million. These Adjustments mainly comprised:
- A negative โฌ -190 million as a consequence of the prolonged suspension of defence export licences to Saudi Arabia by the German government;
- A negative impact of โฌ -83 million relating to the dollar pre-delivery payment mismatch and balance sheet revaluation;
- A negative โฌ -61 million related to A380 programme cost.
Consolidated reported earnings per share of โฌ 0.05 (Q1 2018: โฌ 0.37) included a negative adjustment for foreign exchange hedges in the financial result corresponding to the prolonged suspension of defence export licences. The financial result was โฌ -43 million (Q1 2018: โฌ 39 million). The financial impacts recorded in the Q1 2019 Financial Statements relating to the prolonged suspension of defence export licences also impacted the effective tax rate. Consolidated net income(2) was โฌ 40 million (Q1 2018: โฌ 283 million).
Consolidated free cash flow before M&A and customer financing of โฌ -4,341 million (Q1 2018: โฌ -3,839 million), mainly reflected the inventory build to support the production ramp-up, improved engine delivery stream and other changes in working capital. Consolidated free cash flow was โฌ -4,448 million (Q1 2018: โฌ -3,656 million).
On 1 January 2019, the Company adopted the IFRS 16 โLeasesโ accounting standard, whereby most operating leases must now be recorded on the balance sheet. The corresponding commitments are booked as financing liabilities, which being part of the Companyโs definition of net cash, means the net cash position is mechanically reduced by around โฌ 1.4 billion. The consolidated net cash position was โฌ 7.5 billion on 31 March 2019 (year-end 2018: โฌ 13.3 billion) with a gross cash position of โฌ 18.5 billion (year-end 2018: โฌ 22.2 billion).
ย
Outlook
As the basis for its 2019 guidance, the Company expects the world economy and air traffic to grow in line with prevailing independent forecasts, which assume no major disruptions.
The 2019 earnings and Free Cash Flow guidance is before M&A.
- Airbus targets 880 to 890 commercial aircraft deliveries in 2019.
- On that basis:
Airbus expects to deliver an increase in EBIT Adjusted of approximately +15% compared to 2018 and FCF before M&A and Customer Financing of approximately โฌ 4 billion.
Air Macau showcases its first Airbus A320neo
Air Macau has presented its first A320neo (B-MCK) at a ceremony held at Macau International Airport. The aircraft is the 21stย Airbus aircraft in Air Macauโs fleet that already includes four A319ceo, six A320ceo and 10 A321ceo aircraft.
In total, Air Macau will receive eight additional A320neo and A321neo aircraft under leasing agreement in order to meet its fleet renewal and expansion program.
The new aircraft features 158 seats (eight business and 150 economy seats). Selected for its outstanding operational efficiency, comfort and range, the A320neo will be deployed by the career on its regional services.
Featuring the widest single-aisle cabin in the sky, the A320neo Family incorporates the very latest technologies including new generation engines and Sharklets, which together deliver at least 15 percent fuel savings at delivery and 20 percent by 2020. At the end of March 2019, the A320neo Family had received more than 6,500 firm orders from over 100 customers worldwide.
Photo: Airbus.
First JAL Airbus A350-900 rolls out of Airbus paint shop
Airbus made this announcement:
The first A350 XWB for Japan Airlines (JAL) has rolled out of the Airbus paint shop in Toulouse, France. The A350-900 is the first ever Airbus aircraft to be produced directly for JAL and features a special A350 red logo on the fuselage.
The aircraft will now proceed to ground and flight tests, before delivery to JAL in early summer.
In total JAL has ordered 31 A350 XWB aircraft, comprising 18 A350-900s and 13 A350-1000s. The A350-900 will initially be operated on major domestic routes, with a three class configuration seating 369 passengers.
The A350 XWB is the worldโs most modern and eco-efficient aircraft family shaping the future of air travel. It is the long-range leader in the large wide-body market (300 to 400+ seats). The A350 XWB offers by design unrivalled operational flexibility and efficiency for all market segments up to ultra-long haul (15,000km).
The A350 XWB features the latest aerodynamic design, carbon fibre fuselage and wings, plus new fuel-efficient Rolls-Royce engines. Together, these latest technologies translate into unrivalled levels of operational efficiency, with a 25 per cent reduction in fuel burn and emissions. The A350 XWBโs Airspace by Airbus cabin is the quietest of any twin-aisle and offers passengers and crews the most modern in-flight products for the most comfortable flying experience.
At the end of March 2019, the A350 XWB Family had received 890 firm orders from 50 customers worldwide, making it one of the most successful wide-body aircraft ever.
Note: The pictured Airbus A350-941 in the special livery will become JA01XJ on delivery.
All photos by Airbus.
Boeing Statement on 737 MAX Disagree Alert
Boeing has issued this statement:
We want to provide a response to several news stories yesterday and today reporting on the disagree alert on the 737 MAX.
Boeing included the disagree alert as a standard feature on the MAX, although this alert has not been considered a safety feature on airplanes and is not necessary for the safe operation of the airplane. Boeing did not intentionally or otherwise deactivate the disagree alert on its MAX airplanes.ย
The disagree alert was intended to be a standard, stand-alone feature on MAX airplanes. However, the disagree alert was not operable on all airplanes because the feature was not activated as intended.
The disagree alert was tied or linked into the angle of attack indicator, which is an optional feature on the MAX. Unless an airline opted for the angle of attack indicator, the disagree alert was not operable.
On every airplane delivered to our customers, including the MAX, all flight data and information needed to safely operate the aircraft is provided in the flight deck and on the flight deck display. This information is readily accessible to pilots, and it always has been.
The air speed, attitude, and altitude displays, together with the stick shaker, are the primary flight information indicators in the flight deck. All recommended pilot actions, checklists, and training are based upon these primary indicators, not on the AOA disagree alert or the angle of attack indicator.
As the MAX safely returns to the air after the software modifications are approved and certified, all MAX production aircraft will have an activated and operable disagree alert and an optional angle of attack indicator. All customers with previously delivered MAX airplanes will have the ability to activate the disagree alert per a service bulletin to airlines.
We are confident that when the MAX returns to the skies,ย it will be one of the safest airplanes ever to fly.
WestJet touches down in Portland, Oregon
WestJet has made this announcement:
Building on WestJet’s position as Calgary’s largest air carrier, the airline began its new nonstop flight between Portland International Airport (PDX) and Calgary nInternational Airport (YYC) today. The new flight is the first-ever WestJet-scheduled service to and from Portland.
WestJet’s nonstop flight to Calgary allows for convenient access to its western Canadian network where the airline will operate 145 daily flights from Calgary to 54 destinations including Edmonton, Winnipeg, Toronto, Montreal, Halifax, Saskatoon, Regina, Atlanta, Nashville, New York, London, Paris and Dublin.ย WestJet operates more flights to more destinations from Calgary than any other airline.ย WestJet’s codeshare partner, Delta, also offers travellers from Calgary the opportunity to connect to Minneapolis/St. Paul International Airport, Seattle/Tacoma and Salt Lake City International Airport out of Portland.
| Route | Frequency | Departing | Arriving | Effective |
| Calgary โ Portland | Daily | 10:30 a.m. | 11:17 a.m. | April 29, 2019 |
| Portland โ Calgary | Daily | 12:10 p.m. | 2:57 p.m. | April. 29, 2019 |
This summer, WestJet will operate over 740 daily flights in peak summer to 92 destinations including 42 in Canada, 23 in the United States, 28 in Mexico, the Caribbean and Central America, and five in Europe.
El Al’s 787 4X-EDD receives a special livery for new flights to Las Vegas and San Francisco
El Al Israel Airlines has introduced this special livery on 4X-EDD. The unique color scheme was designed by illustrator Shay Vadel and art director Amir Assayag.
The special livery depicts landmarks from both Las Vegas (right) and San Francisco (left), two new routes for the carrier.
The Tel Aviv – San Francisco route starts on May 13, 2019.
The Tel Aviv – Las Vegas route starts on June 14, 2019.
Copyright Photo: El Al Israel Airlines Boeing 787-9 Dreamliner 4X-EDD (msn 63392) (San Francisco) YYZ (TMK Photography). Image: 946346.
El Al aircraft slide show:
NAC leases two ATR 72-600s to Air Kanbawza (Air KBZ)
Nordic Aviation Capital (NAC) has delivered two new ATR 72-600s, MSNs 1528 and 1531, to Air Kanbawza Ltd on lease.
About Air Kanbawza
Under the guidance of Myanmar Investment Commission, Air Kanbawza, otherwise known as Air KBZ, was established in June 2010. The purpose of this establishment is to help the fellow existing airlines cater to the growing demands of air travel in Myanmar.
The airline had its first commercial flight in April 2011. Currently, it operates scheduled domestic services throughout Myanmar from Yangon’s International Airport and a hub in Mandalay.
In December 2016, Air KBZ began scheduling services between Yangon and Chiang Mai in neighboring Thailand.
Myanmar Airways International is a sister company, within the KBZ Group.
Top Copyright Photo (all others by the airline): Air KBZ ATR 72-212A (ATR 72-600) XY-AJE (msn 1068) (27th Sea Games 2013) RGN (Christian Volpati Collection). Image: 922970.
Air KBZ aircraft slide show:
Route Map:
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FAA issues a new AD for all Boeing 787 Dreamliners
The Federal Aviation Administration (FAA) has issued this airworthiness directive (AD):
We are adopting a new airworthiness directive (AD) for all The Boeing Company Model 787 series airplanes. This AD was prompted by reports of hydraulic leakage caused by damage to aileron and elevator actuators from lightning strikes. This AD requires an inspection or records check to inspect for certain parts, detailed inspections of aileron and elevator power control units (PCUs), and applicable on-condition actions. We are issuing this AD to address the unsafe condition on these products.
CNBC: flydubai is looking at the Airbus A320neo
From CNBC: flydubai, a large Boeing 737 MAX operator, is now looking at the Airbus A320neo.
Read the full story: CLICK HERE
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