Passion for Progress
Annual Report 2018 Quick Read

Passion for progress

Every day, we use our passion for progress to address today and tomorrow’s challenges.

Highlights

In 2018, our passion for progress helped us to achieve several key milestones.

Financial

Revenues (€ billion)
0.0 8%
(2017: 59.0)
Earnings per share (€)
0.0 29%
(2017: 3.05)
Free cash flow before M&A and customer financing (€ billion)
0 0%
(2017: 2.9)
Dividend per share (€)
0.0 10%
(2017: 1.50)

Non-Financial

Number of training hours (over)
0
(October 2017 to September 2018)
Ethics and Compliance (digital training sessions)
0
(2017: 84,273)
Health and Safety training hours (to 30,800 employees)
00
(October 2017 to September 2018)
Patents held worldwide (circa)
00
 

Operational

Deliveries in 2018
0
Commercial aircraft: (2017: 718)
 
0.0
Helicopters (2017: 409)
 
0.0
A400M aircraft (2017: 19)

Chairman’s message &
Chief Executive Officer interview



                                Denis Ranque, Chairman of the Board

We are well positioned to harvest the rewards of our new products and services.

Denis Ranque, Chairman of the Board
Chairman's full message


                                Tom Enders, Chief Executive Officer

It was another year of solid progress…We were able to deliver a sharp rise in profitability.

Tom Enders, Chief Executive Officer
CEO's full interview


            Strategy in action

Strategy in action

During 2018, we made good progress against our key priorities. Some of the focus areas included:

Production ramp-up

Digitalisation

Continuous innovation

A320 Family - New facilities BelugaXL - Investing to deliver

Production ramp-up

Ramping-up A320 Family aircraft production and transitioning to the NEO version was a key priority for 2018. A350 production also increased.

A320 Family

New facilities

We are committed to reaching a combined monthly A320 Family production rate of 60 aircraft by mid-2019. A key enabler for this during 2018 was the opening of a fourth A320 Family production line in Hamburg. The new line makes use of digital technologies and a more flexible industrial set up to build aircraft more efficiently.

Results

0

A320 Family deliveries
(CEO and NEO)

+ 0 %

(Compared to 2017)

BelugaXL - Investing to deliver
BelugaXL

Investing to deliver

To address greater transport capacity requirements related to the ramp-up of single-aisle and A350 XWB aircraft production, we have invested in a new fleet of larger BelugaXL aircraft.

Flight testing underway

Following its first flight in July 2018, the BelugaXL will undergo some 600 hours of flight testing ahead of its planned entry-into-service during 2019. The aircraft provides us with an additional 30% of extra transport capacity compared to the current BelugaST aircraft. It can transport two A350 XWB wings.

Results

0 %

Additional transport capacity

0 tonnes

Max. take-off weight versus 155 tonnes for BelugaST

Skywise - Gaining traction SmartForce launched - Wider offering

Harnessing the power
of data

A key part of our digitalisation strategy is to unlock the full potential of data in our industry. We focused on industrialising and deploying our most promising digital concepts, including Skywise.

Skywise

Gaining traction

We made significant progress in rolling out the Skywise digital platform to support the operations of airlines around the world, creating value in new ways for them and also for Airbus. More than 50 airlines representing over 4,000 aircraft had signed up by year-end.

Skywise now has more than:

0

Airlines signed up

0

Commercial aircraft represented

SmartForce launched - Wider offering
SmartForce launched

Wider offering

Building on the success of Skywise, we have now introduced advanced data analytics to the defence market through the launch of SmartForce by Airbus Defence and Space and Airbus Helicopters. This system offers a suite of services to enable military operators to exploit data gathered by their aircraft to enhance operational safety, boost mission availability and reduce maintenance support costs. More efficient maintenance is possible by using the wealth of data generated by new generation helicopters and aircraft such as the NH90, A400M and A330 MRTT.

A330neo - Improving efficiency New variants - Pushing the limits

Continuous innovation

We continuously innovate to ensure that our products are at the forefront of aerospace technology. Our commercial aircraft are designed with our customers in mind, helping them to operate their fleets more efficiently and serve new markets.

A330neo

Improving efficiency

During 2018, deliveries of the new generation wide-bodied A330-900 commenced, while the smaller A330-800 variant made its first flight. These A330neo models offer a reduction in fuel consumption per seat of 25% compared with older generation aircraft of a similar size.

Results

0 %

Fuel saving versus previous generation

+ 0 nm

More range for A330-800 versus earlier A330-200

New variants - Pushing the limits
New variants

Pushing the limits

Greater fuel efficiency and technological developments are helping Airbus’ customers to tap new markets and gain a competitive edge.

Airbus delivered the first A321LR, the world’s most flexible and capable large single-aisle aircraft. The aircraft gives operators the flexibility to fly long-range operations of up to 4,000 nautical miles. Meanwhile, the A350-900 Ultra Long Range also went into service. It’s capable of flying up to 9,700 nautical miles or over 20 hours non-stop.

Results: A350-900 ULR

0

Nautical miles. Further in commercial service than any other aircraft.

0 hours

Or more non-stop

Our people

The Company continues developing its workforce to pioneer the aerospace industry’s transition to a digital future. Employees should possess the required skills and adaptability to master change.

Partnering with universities

Partnering with universities

Airbus continues to attract the brightest minds from the most innovative universities. With that in mind, three new universities were signed up to the Airbus Global University Partner Programme.

Awards for Excellence

Awards for Excellence

The annual employee Awards for Excellence held its prize giving ceremony in March 2018. Project teams were recognised for their new ways of working together with the Special Pulse Recognition prize.

Diversity award

Diversity award

By offering STEM outreach education to indigenous minorities and young people in rural areas, a Chilean university has given them valuable potential career paths. The SaviaLab diversity initiative received the 2018 Airbus GEDC Diversity Award.

Digital aerospace competition

Digital aerospace competition

More than 2,000 students registered to present their ideas for digital innovations in just the first three months of the sixth Fly Your Ideas competition.

Responsibility & Sustainability

Through introducing a Responsibility and Sustainability (R&S) Charter, the Company placed responsible business conduct at the heart of its strategy.

Sustainable fuel-powered A320s

Sustainable fuel-powered A320s

The A320 Family production facility in Mobile, USA, delivered the first aircraft partially powered by sustainable jet fuel to JetBlue. Airbus is working towards offering this option to more customers receiving aircraft from Mobile.

Inspiring young innovators

Inspiring young innovators

Launched in May 2018, the Airbus Foundation’s Discovery Space is an inventive digital platform where young people from around the world can understand science through aerospace.

Making manufacturing sustainable

Making manufacturing sustainable

Airbus believes it has a crucial role to play in promoting sustainable manufacturing practices. It has set ambitious but measurable goals to lessen its environmental impact in commercial aircraft manufacturing by 2030.

Eyeing deforestation through satellites

Eyeing deforestation through satellites

To help food companies monitor deforestation in their supply chains, Airbus, along with non-profit organisation The Forest Trust, and Netherlands-based SarVision, developed Starling, which deploys satellite data and radar images.

Operational review

During 2018 the Company recorded a number of operational achievements in its main business segments.

Airbus

Airbus

Airbus delivered 800 commercial aircraft, meeting its target and setting a new company record. Deliveries of A320neo Family and A350 XWB aircraft accelerated.

As overall production continued to ramp-up, deliveries increased for the 16th year in a row despite operational challenges. Ninety-three customers received a total of 800 aircraft, compared to 718 deliveries in 2017. The single-aisle production ramp-up and transition to the NEO version continued, with annual A320neo Family deliveries outnumbering A320ceo deliveries for the first time. The A220, formerly known as the ‘C Series’, joined Airbus’ line-up of aircraft in July. Its A220-100 and A220-300 variants complement the A320 Family.

Key achievements 2018

  • Deliveries increased for the 16th successive year to 800 aircraft
  • A220 integrated into Airbus, enhancing the product portfolio
  • Order backlog reached 7,577 aircraft, including the A220

Key priorities 2019

  • Plan and deliver reliably on operational targets
  • Meet key programme milestones
  • Deliver financial KPIs
Airbus Helicopters

Airbus Helicopters

Airbus Helicopters booked increased orders despite a challenging environment for the industry. It retained its global leadership in the civil and parapublic sector.

Airbus Helicopters attracted a higher number of orders, with a book-to-bill ratio above 1 in terms of both value and units. Net orders rose 14% to 381 units. The first of 100 H135 helicopters under a framework agreement with China were delivered in Qingdao. The first H160 in serial configuration rolled off the new assembly line in Marignane, France, and conducted its maiden flight. This serial version joined three prototypes, which have already accumulated over 1,000 flight hours. The CityAirbus electric vertical take-off and landing (eVTOL) rotorcraft passed the power-on and ground testing stages, ahead of its maiden flight.

Key achievements 2018

  • Strong order intake, with book-to-bill above 1 and first H160 orders
  • Share of the military helicopter market increases
  • First serial H160 takes to the skies ahead of certification

Key priorities 2019

  • Deliver on our commitments and achieve key programme milestones
  • Strengthen our focus on Quality and deliver our Aviation Safety commitment
  • Deliver financial KPIs and boost competitiveness
Airbus Defence and Space

Airbus Defence and Space

Airbus Defence and Space secured important contract wins, with positive mid- to long-term market perspectives. New initiatives were launched.

Airbus Defence and Space recorded a book-to-bill of around 0.8 with net order intake of € 8.4 billion, supported by key contract wins. Significantly, an initial landmark agreement was signed with Dassault Aviation for the Future Combat Air System (FCAS) programme. Elsewhere, an agreement was signed with Lockheed Martin to jointly explore opportunities to meet growing demand for aerial refuelling for US defence customers. The first serial production facility for the solar-powered Zephyr S HAPS (High Altitude Pseudo-Satellite) was opened. A total of 17 A400M military transport aircraft were delivered, bringing total programme deliveries to 74 aircraft as of 31 December 2018.

Key achievements 2018

  • Key contract wins: Eurofighter Qatar, four MRTTs, and new generation telecommunication satellites
  • Airbus and Dassault Aviation join forces on FCAS programme
  • Airbus and Lockheed Martin sign aerial refuelling Memorandum of Agreement

Key priorities 2019

  • Meet critical development milestones on quality, on time, on cost
  • Secure key European defence initiatives – European MALE, FCAS
  • Deliver financial KPIs