Category Archives: Analytics

Forecast International prepares another study of the new business jets supply market for the next 15 years

The Forecast International Consulting Agency has prepared its another study of the market supply of new business jets for the next 15 years. A document called Platinum Forecast International 3.1 was published by the company last week.

IATA predicts almost double increase in the number of air passengers worldwide by 2036

The International Air Transport Association (IATA) expects 7.8 billion passengers to travel in 2036, a near doubling of the 4 billion air travelers expected to fly this year, Interfax writes.

Boeing’s financial results exceeded market forecasts

The Boeing Company, the U.S. aircraft manufacturer, reported on the exceeded average market expectations of quarterly financial results, according to Finam.

The number of transit flights in the sky of Georgia increased by 4.7% and achieves 106,600

According to statistics, the number of flights in the airspace of Georgia has increased by 14.7% for the Jan-Sep 2017, the Georgian Air Navigation Agency reported.

Airports of Georgia: passenger traffic increased by almost 50% in 2017

For January-July 2017, over 2.1 million passengers passed through Georgian airports, which is by 48.4% more than during the same period in 2016, and by 81.9% more than during the first seven months of 2015.

Boeing reports strong second-quarter results; raises EPS and cash flow guidance

Boeing reports strong second-quarter results; raises EPS and cash flow guidance:

  • GAAP EPS of$2.89 and core EPS (non-GAAP)* of $2.55 on solid execution across the company
  • Strong operating cash flow of$5.0 billion; repurchased 13.6 million shares for $2.5 billion
  • Revenue of$22.7 billion reflecting 226 commercial and defense aircraft deliveries and services
  • Backlog grew to$482 billion, including $27 billion of net orders during the quarter
  • Increased guidance for GAAP EPS$0.75 and core EPS (non-GAAP)* $0.60 on improved performance and tax
  • Raised operating cash flow guidance by$1.5 billion and lowered capital expenditures guidance by $300 million

Airbus reduces its net profit by 34% in the Q2 2017

Airbus Group, the European aerospace corporation, has reduced its net profit by 34% in the Q2 2017 due to problems with the supply of aircraft. As reported in the company’s press release, its net profit amounted to EUR 895 million in April-June 2017, as compared to EUR 1.36 billion for the same period last year, according to Interfax, Russia.

New jets threaten Airbus and Boeing duopoly

The largest manufacturers of commercial aircraft, namely Boeing and Airbus, face aircraft manufacturers from China, Russia and Canada. According to some experts, the duopoly, which lasted several decades, may end. Nevertheless, most of the new aircraft have not even entered the market yet, so this is a matter of several decades rather than the next few years.

Trends of domestic flights are changing Global Aviation Market

Aviation demand is set to be fueled by the rising affluence of the middle classes in emerging markets. Consequently, the air traffic industry is forecast to grow most significantly in Africa, the Middle East and the Asia-Pacific region.

Airbus reports first quarter 2017 results

Картинки по запросу airbus logo

SE (stock exchange symbol: AIR) reported first quarter 2017 results and
confirmed its guidance for the full year.

first quarter performance doesn’t offer any big surprises: we are on track for
our full year EBIT and free cash flow objectives and we took a nice uptick in
cash proceeds from the sale of Defence Electronics,” said Airbus Chief
Executive Officer Tom Enders. “New order activity was low in Q1 as predicted
but let’s not forget that our strong order book of over 6,700 commercial
aircraft supports our ongoing production ramp-up. Programme execution remains
key for all our businesses!”

Order intake(1) totalled € 3.8 billion (Q1 2016:
€ 7.2 billion) with the order book(1) valued at

1,030 billion as of 31 March 2017 (year-end 2016: € 1,060 billion) and
supporting the ramp-up plans. Net commercial aircraft orders amounted to six
aircraft (Q1 2016: 10 aircraft), with the backlog comprising 6,744 aircraft as
of 31 March. Net helicopter orders rose to 60
(Q1 2016: 51 net orders), including 10 Super Puma family helicopters and 14
H145s. Defence and Space’s order intake was impacted by the perimeter changes
from portfolio reshaping.

Revenues increased seven percent to € 13.0
billion (Q1 2016: € 12.2 billion). Commercial Aircraft’s revenues rose 13
percent, with deliveries of 136 aircraft (Q1 2016: 125 aircraft) including a
higher proportion of A350 XWBs. Helicopters’ revenues increased by 11 percent
with deliveries of 78 units (Q1 2016: 56 units). Lower revenues at Defence and
Space were mainly driven by the perimeter change impact from portfolio
reshaping but were stable on a comparable basis. The sale of the Defence
Electronics business took place in the first quarter.

EBIT Adjusted – 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, restructuring or foreign exchange impacts as well as capital
gains/losses from the disposal and acquisition of businesses – totalled  €
240 million (Q1 2016: € 498 million).

Aircraft’s EBIT Adjusted was € 281 million (Q1 2016: € 406 million), mainly
reflecting the aircraft delivery mix, transition pricing and some higher ramp-up

progress was made on the A350 XWB with 13 aircraft delivered in the quarter.
The programme is on track to reach the monthly production target of 10 aircraft
by the end of 2018. The level of outstanding work has improved in the
industrial system and supply chain bottlenecks are also beginning to improve. A
key area of focus remains recurring cost convergence, which is challenging, as
the ramp-up pace accelerates.

On the
A320neo programme, a total of 26 aircraft were delivered to 14 customers. The
first delivery of an A321neo occurred in April. Flight testing of the A319neo
is now underway.
The A320neo is exceeding expectations, however customers are experiencing a
number of in-service issues which need to be resolved, in particular with the
Pratt & Whitney GTF engine. The ramp-up will again be back-loaded this year
to reflect the necessary time for the implementation of product improvements.

higher deliveries and revenues, Helicopters’ EBIT Adjusted totalled € -2
million (Q1 2016: € 33 million). This reflected an unfavourable mix and lower
commercial flight hours in services as well as impacts associated with the
partial H225 grounding. The Company continues to work with the investigation
authorities and customers to resume flights and services in all regions.

and Space’s EBIT Adjusted declined to € 63 million (Q1 2016: € 107 million),
mainly reflecting the perimeter change with the underlying business performing
as expected.

A400Ms were delivered compared to two aircraft in the first quarter of 2016. Discussions
were entered into with customers as planned. Challenges remain on meeting
contractual capabilities, securing sufficient export orders in time, cost
reduction and commercial exposure, which could be significant.

Group self-financed R&D expenses were
stable at € 548 million (Q1 2016: € 547 million).

EBIT (reported) of € 852 million (Q1
2016: € 362 million) included Adjustments totalling a net
€ +612 million.
These Adjustments comprised:

  • A net capital gain of € 560 million from
    the divestment of the Defence Electronics business;
  • A positive impact of € 55 million related
    to the dollar pre-delivery payment mismatch and balance sheet revaluation;
  • A net negative impact of € 3 million
    related to other portfolio changes at Defence and Space.

Net income(2) increased to € 608 million (Q1
2016: € 399 million) after the EBIT Adjustments with earnings per shareof € 0.79 (Q1 2016: € 0.51).  EPS and net income included a significant
negative impact mainly from the revaluation of financial instruments. The
finance result was        € -206 million (Q1
2016: € 193 million).

Free cash flow before M&A and customer financing was
€ -1,269 million (Q1 2016:  € -2,731 million), reflecting the strong focus
on working capital amid the production ramp-up and back-loaded deliveries. Free cash flowof € -1,116 million (Q1 2016: € -3,131 million) included net proceeds of around
€ 600 million from the Defence Electronics disposal.
The net cash
on 31 March 2017 was € 9.8 billion (year-end 2016: €
11.1 billion) with a gross cash position of € 20.3 billion (year-end 2016: €
21.6 billion).


As the
basis for its 2017 guidance, Airbus expects the world economy and air traffic
to grow in line with prevailing independent forecasts, which assume no major

2017 earnings and free cash flow guidance is based on a constant perimeter:

  • Airbus expects to deliver more than 700
    commercial aircraft.
  • Before M&A, Airbus expects
    mid-single-digit percentage growth in EBIT Adjusted and EPS Adjusted
    compared to 2016.
  • Free Cash Flow is expected to be similar
    to 2016 before M&A and Customer Financing.

perimeter change in Defence and Space is expected to reduce EBIT Adjusted and
Free Cash Flow before M&A and Customer Financing by around € 150 million
and EPS Adjusted by around 14 cents.

About Airbus

Airbus is a global leader in aeronautics, space and related services. In
2016, it generated revenues of € 67 billion and employed a workforce of around
134,000. Airbus offers the most comprehensive range of passenger airliners from
100 to more than 600 seats. Airbus is also a European leader providing tanker,
combat, transport and mission aircraft, as well as Europe’s
number one space enterprise and the world’s second largest space business. In
helicopters, Airbus provides the most efficient civil and military rotorcraft
solutions worldwide.

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