European aerospace giant Airbus has reported a stellar half-year result, with news from Air France and British Airways adding sparkle to a sunny outlook – although the iconic A380 is fading out of the picture.
Rivals British Airways and Air France-KLM are each buying Airbus planes, though Air France has announced it will retire all of its A380s by the end of 2022, Lufthansa is on a similar trajectory and Qatar Airways plans to retire each of its A380s as they reach 10 years of age.
Here are some of the main developments affecting Airbus, British Airways and Air France.
AIRBUS profits have more than doubled in the first half of the calendar year, a robust result it attributes mainly to increased production of its A320 family of aircraft.
It said net profits reached EUR 1.197 billion (AUD 1.93 billion), up from EUR 496 million in the same six-month period last year.
“The half-year financial performance mainly reflects the ramp-up in production of A320 Family aircraft and transition to the more efficient NEO version, as well as further progress on the A350 financial performance,” Airbus chief executive Guillaume Faury said.
Airbus second-quarter adjusted operating profit rose 72% to EUR 1.98 billion (AUD 3.2 billion), led by strong demand for Airbus planes. Revenues rose 23% to EUR 18.32 billion (AUD 29.6 billion).
The only clouds on the horizon are concerns about Brexit and a simmering dispute with the US over accusations of government subsidies.
Air France new A220-300, one of an order of 60
The Airbus result contrasts starkly with rival Boeing, which recently announced a net loss of USD 2.94 billion for the second quarter, a colossal dive from the USD 2.2 billion profit it declared for the corresponding quarter a year earlier. Boeing’s doldrums are attributable solely to the 737 MAX fiasco.
For both plane makers, the shift from large four-engine planes to two-engine models continues. One piece of good news for Boeing is that it may be able to sell more 777-9 jets as airlines plan for the replacement of their A380s.
BRITISH AIRWAYS took delivery of its first A350-1000, making it the first operator of the larger A350-1000 in the International Airlines Group (IAG). In total, BA has ordered 18 A350-1000s. Iberia, which is also part of IAG, already operates five of the smaller A350-900s.
A long-range version of the A350 is the plane tipped as most likely choice for Qantas when it buys new aircraft to launch its planned non-stop services from Australia’s east coast to Europe.
BA’s A350 XWB, with its modern and comfortable Airspace cabin, will usher in new comfort with the launch of the Club Suite, the first new business class seat for British Airways in 13 years. The airline’s newly-branded “Club Suite” offers direct-aisle access, a suite door for greater privacy and luxurious flat-bed seats in a 1-2-1 configuration.
The three-class layout includes 56 Club Suites, 56 World Traveller Plus and 219 World Traveller economy seats.
BA will initially use the aircraft to fly between London and Madrid before flying long-haul routes from September. BA operates a fleet of over 150 Airbus aircraft from the smallest A318 to the largest A380.
At the end of June 2019, the A350 XWB Family had received 893 firm orders from 51 customers worldwide, making it one of the most successful wide-body aircraft ever.
AIR FRANCE has confirmed it will retire its fleet of 10 Airbus A380s by the end of 2022 – while at the same time, the Air France-KLM Group has signed a Memorandum of Understanding (MoU) to buy 60 A220-300 aircraft to modernise its fleet.
Airbus has already announced it will end production of the A380, a plane loved by the travelling public but disliked by airline accountants, who view its four engines as two too many. Airbus made the fateful decision when the main customer, Emirates, declined to place a firm order deemed to be sufficient.
Air France’s announcement about the A380 followed a previous decision to reduce its A380 fleet from 10 to seven aircraft.
“The current competitive environment limits the markets in which the A380 can profitably operate,” the airline’s parent company Air France-KLM said in a statement.
“With four engines, the A380 consumes 20-25 per cent more fuel per seat than new generation long-haul aircraft, and therefore emits more CO2.
British Airways new A350-1000
“Increasing aircraft maintenance costs, as well as necessary cabin refurbishments to meet customer expectations reduce the economic attractiveness of Air France’s A380s even further.”
Lufthansa and Qatar Airways have already announced plans to either reduce or withdraw the A380 from their fleets, Australian Aviation has noted.
On the regional front, Air France-KLM says the A220-300 is “the industry’s most efficient and technologically advanced single-aisle aircraft”. It’s order for 60 of them will let the benefit from a significant reduction in fuel burn and CO2 emissions. These A220s are intended to be operated by Air France.
“The acquisition of these brand new A220-300s aligns perfectly with Air France–KLM’s overall fleet modernisation and harmonisation strategy,” said Benjamin Smith, chief executive of the Air France-KLM Group.
“This aircraft demonstrates optimum operational and economic efficiency and enables us to further improve our environment footprint thanks to the A220’s low fuel consumption and reduced emissions. It is also perfectly adapted to our domestic and European network and will enable Air France to operate more efficiently on its short and medium-haul routes.”
Written by Peter Needham
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