Airbus confirms it delivered 51 jets in May

Airbus reported delivering 51 jets in May, a 4% decrease compared to the same period last year, and a total of 243 aircraft year-to-date, down 5%. The planemaker also reported zero new orders for the month of May. Year-to-date, Airbus has sold 291 aircraft, resulting in a net total of 215 after cancellations.

Analysis

Airbus (AIR.PA) reported a decline in aircraft deliveries for May, with 51 jets delivered, marking a 4% decrease compared to the same month last year. This trend extends to year-to-date figures, with 243 aircraft delivered, down 5% from the previous year. Notably, the planemaker also announced zero new orders for May, which, combined with the delivery slowdown, signals potential near-term challenges. While Airbus has accumulated 291 gross orders since January, the net figure after cancellations stands at 215 aircraft. These figures, reflecting a moderately negative sentiment (-0.45 overall, -0.65 for AIR.PA), suggest headwinds for the company's production ramp-up and sales momentum, impacting its corporate fundamentals and earnings outlook within the transportation sector.

Key Decisions for Investors

• Investors should closely scrutinize Airbus's subsequent monthly order and delivery reports to ascertain if the May performance indicates a sustained downturn or a temporary fluctuation.
• The combination of declining year-over-year deliveries and a complete lack of new orders in May warrants a cautious approach towards AIR.PA, with particular attention to its ability to meet full-year targets.
• Consider the net order intake of 215 aircraft year-to-date as a more conservative measure of demand, factoring in the impact of cancellations on the company's backlog and future revenue visibility.