Airbus announced a profit of €983 million ($1 billion) for the third quarter, while Boeing reported a loss of $6 billion during the same timeframe.
The European manufacturer has secured more orders and is managing supply-chain challenges more effectively.
Currently, Airbus’s market capitalization exceeds Boeing’s by approximately $28 billion.
On Wednesday, Airbus unveiled its financial results for the third quarter, highlighting its competitive edge over Boeing.
The European aerospace giant recorded a quarterly profit of €983 million ($1 billion), starkly contrasting with Boeing’s reported loss of $6.1 billion last week.
According to UBS analyst Ian Douglas-Pennant, investors should find reassurance in Airbus’s profit margins; however, concerns regarding supply chain vulnerabilities may temper this optimism.
The stock experienced a slight dip on Thursday before rebounding. While shares have remained relatively stable throughout the year, Airbus boasts a valuation around $123 billion—$28 billion higher than that of Boeing. Notably, its stock has plummeted nearly 40% this year alone.
1. Building Customer Trust
Since 2019, Airbus has consistently outperformed Boeing in sales following the prolonged grounding of the 737 Max due to two tragic crashes that claimed nearly 350 lives.
Boeing faced customer dissatisfaction after an incident involving Alaska Airlines’ 737 Max earlier this year raised quality control concerns and disrupted production schedules.
In just nine months this year, Airbus secured an impressive total of 667 gross orders—more than double that of Boeing’s mere 315 orders during the same period.
The A320 family from Airbus continues to dominate single-aisle aircraft sales and is poised for further success with its innovative A321 XLR model designed for longer routes. The first unit was delivered to Iberia Airlines on Wednesday.
On that same day, Riyadh Air placed an order for 60 units of the A321neo despite earlier speculation suggesting they might choose Boeing’s offerings instead for their single-aisle fleet expansion plans.
2. Effectively Managing Backlogs
Apart from securing sales contracts, timely aircraft deliveries are crucial in maintaining investor confidence and satisfaction among clients alike. Royal Bank of Canada analyst Ken Herbert noted that “the primary focus among investors is ensuring successful execution in aircraft deliveries.”Boeing currently faces over 5,400 orders while Airbus holds approximately 8,750 backlogged requests.Boeing currently faces over 5,400 orders while Airbus holds approximately 8,750 backlogged requests.Both manufacturers are grappling with significant supply chain constraints affecting labor availability and raw material procurement; however, Airbus appears better equipped to navigate these challenges successfully. This year alone, it has managed to deliver 497 planes compared to only 291 by Boeing.
Morningstar analyst Nicolas Owens emphasized that “Airbus’s main objective remains ramping up production rates beyond pre-pandemic levels.”
Similar trends as last year’s performance indicate increased deliveries expected within Q4, allowing them to meet their target goal set at delivering 770 planes overall. Deutsche Bank analyst Christophe Menard remarked on this guidance confirmation as ”arguably one major surprise from their release.”