Airbus (AIR) Stock: Profits Halve as Deliveries Slow in Q1 2026

TLDR

• Airbus Q1 adjusted operating profit fell 52% to €300M, from €624M a year ago
• Revenue dropped 7% to €12.65B, but beat analyst forecasts
• Only 114 aircraft delivered in Q1, down from 136 a year ago and below Boeing’s 143
• Engine shortages from supplier Pratt & Whitney continue to weigh on output
• Full-year delivery target of 870 aircraft left unchanged

Airbus posted a rough first quarter, with adjusted operating profit dropping 52% to €300 million, down from €624 million in Q1 2025. Revenue came in at €12.65 billion, a 7% decline from the same period last year.

Despite the profit miss, revenue actually beat analyst expectations. Analysts had forecast €12.39 billion in revenue and €348 million in adjusted operating profit, according to company-compiled consensus data. EPS came in at 74 euro cents, well above the 44 euro cent forecast.

Airbus SE, AIR.DE

The headline problem is deliveries. Airbus handed over just 114 commercial aircraft in Q1, down 16% from 136 in the same quarter last year. That also fell short of rival Boeing, which delivered 143 aircraft in the same period — a pointed comparison given Boeing’s recent struggles.

The culprit is a familiar one: engine shortages. Pratt & Whitney, a key U.S.-based supplier, has been delivering engines late, putting a ceiling on how fast Airbus can get planes out the door. The situation has turned legal — Reuters reported in March that Airbus is now pursuing potential damages against the supplier.

Deliveries Remain the Central Problem

Airbus left its full-year guidance unchanged, still targeting 870 commercial aircraft deliveries for 2026. It also reaffirmed a production rate goal of 70 to 75 A320-family jets per month by end of 2027 — a target already trimmed in February from the original ambition of 75 per month by the start of that year.

The commercial aircraft segment saw sales fall 11% in the quarter. Helicopters were flat year-on-year, while the defence and space division grew 7%. That defence unit was a rare bright spot, posting adjusted core profit of €130 million against an analyst estimate of €111 million.

Investor Sentiment Shifting

Analyst sentiment around Airbus has cooled since the start of 2026, partly because Boeing is showing signs of recovery. Boeing reported a narrower-than-expected loss in Q1, with improvements across its commercial aircraft business as it works through a prolonged turnaround following its own quality and production crisis.

Boeing CEO Kelly Ortberg said demand has held up, with limited impact from Middle East trade disruptions. UBS noted earlier this month that replacement demand remains strong enough to support Airbus even if fuel prices stay elevated.

A weaker U.S. dollar also hurt Airbus results in the quarter. Much of commercial aviation pricing is dollar-denominated, so currency moves can weigh on euro-reported earnings.

Orders remain strong for Airbus, and the company has a deep backlog. But for now, execution on deliveries is what matters most to investors — and Q1 showed that gap between order book and output is still very much open.

The defence and space division’s adjusted core profit of €130 million, ahead of the €111 million estimate, was the clearest outperformance of the quarter.

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