Airbus 3rd-quarter earnings grow despite supply chain woes

Airbus reported on Friday that earnings grew in the third quarter and revenue rose through the first nine months of 2022 as it benefited from a strong U.S. dollar despite supply chain issues.

The Toulouse, France-based company said it has delivered 437 commercial aircraft so far this year and is maintaining its outlook to deliver about 700 through the end of 2022.

CEO Guillaume Faury cited a “complex operating environment" even as profit surged 64% in the July-September period, to 634 million euros ($630 million) from 385 million euros in the same three months of 2021.

“The supply chain remains fragile resulting from the cumulative impact of COVID, the war in Ukraine, energy supply issues and constrained labor markets," Faury said in a prepared statement. But he pointed to benefits from “our strong focus on cash flow" and the U.S. dollar strengthening in value against the euro.

Profit for the first nine months of the year shrank 4%, to 2.48 billion euros. It follows Airbus' net income plunging in the second quarter, leading the company to scale back production targets.

Revenue so far this year rose to 38.1 billion euros from 35.15 billion euros in the first nine months of 2021. Airbus said the growth largely reflected a higher number of deliveries and the the strong dollar.

Boeing blamed higher manufacturing and supply chain costs for driving the losses in government programs.