Airbus beats first-quarter forecasts, maintains targets

Europe's Airbus posted stronger-than-expected revenues and core profit for the first quarter and reaffirmed targets for the year, while stressing it was too early to quantify the impact of a tariff war in which there would be "only losers.".

The world's largest planemaker said widely watched adjusted operating income rose 8% to 624 million euros ($707 million) and revenues gained 6% to 13.54 billion euros in the quarter, led by defense which smoothed the impact of lower jetliner deliveries.

Analysts had on average expected adjusted or underlying operating profit of 602 million euros on revenues of 12.95 billion, according to consensus data compiled by the company. Airbus also burned significantly less cash than expected.

Boeing's European rival continued to project 820 aircraft deliveries for 2025, up from 766 last year, but cautioned these would once again be backloaded towards the latter part of the year as it faces supply chain problems.

The company, which finalized an agreement on Monday to take over some factories of ailing Spirit AeroSystems, said the U.S. aerostructure supplier's difficulties were continuing to put pressure on the ramp-up of the Airbus A320 and A350 jets.

It held its industrial forecasts for aircraft production unchanged, however, and stuck with 2025 financial forecasts that include 7.0 billion euros of adjusted operating profit - a measure routinely used by Airbus to exclude gains and losses related to restructuring, currency and certain other factors.

The 2025 forecasts include the impact of absorbing part of Spirit but not the uncertainty surrounding a growing tariff war.

CEO Guillaume Faury called for a swift return to a 1979 treaty between 33 nations that has ensured duty-free trading in aircraft and parts for decades.

The World Trade Organization side agreement has been upended by the recent imposition of sweeping tariffs by U.S. President Donald Trump, with the European Union among those preparing counter-measures if negotiations fail to find a resolution.

Airbus has not been directly hit by especially high tariffs between China and the United States despite having an assembly line near Beijing, Faury told reporters, adding that Airbus intended to maintain its existing plants in both countries.

Faury said Airbus was talking to customers and suppliers but he ruled out picking up the bill for tariffs for U.S. airlines taking delivery of planes directly from Europe, rather than the company's assembly plant for some of its models in Alabama.

Delta Air Lines CEO Ed Bastian said earlier this month the U.S. carrier would defer aircraft deliveries rather than pay tariffs on them.

In its defense business, Airbus struck a more positive tone over future production of the A400M military airlifter, saying it was in "constructive" talks with purchasing nations.

The A400M has been hit by delays, partial cancellations by European launch nations and slow exports, with the order pipeline expected to run out in 2028. But industry sources have said higher European arms spending could revive interest from buyers that have curbed deliveries, such as France and Spain.

Airbus also announced new charges of 105 million euros related to the ongoing restructuring of its Defence and Space division.