Commercial Aviation
Airbus H1 2025 Financial Results Show Growth Amid Supply Chain Challenges
Airbus reports €29.6B revenue and 402 net orders in H1 2025, managing supply chain delays while maintaining delivery targets and sustainability focus.
Airbus H1 2025 Financial Results, Navigating Growth Amid Supply Chain Headwinds
In the first half of 2025, Airbus SE demonstrated resilience in the face of ongoing global supply chain disruptions, reporting solid financial results and strategic progress. Despite a slight dip in aircraft deliveries compared to the same period in 2024, the aerospace giant increased its revenue, secured more net orders, and reaffirmed its full-year delivery targets. This performance underscores Airbus’s capacity to adapt to operational challenges while maintaining long-term growth trajectories.
With €29.6 billion ($34 billion) in revenue and 306 aircraft delivered, Airbus continues to lead the global aerospace industry. The company’s adjusted EBIT of €2.2 billion ($2.5 billion) reflects efficient cost management and robust demand, particularly in commercial aviation. However, persistent delays in engine and component supplies have impacted delivery schedules, prompting Airbus to delay the closing of its acquisition of Spirit AeroSystems’ work packages to the fourth quarter of 2025.
This article breaks down Airbus’s H1 2025 performance, contextualizes recent developments, and explores the broader implications for the aerospace sector, including competitive dynamics, supply chain resilience, and global demand trends.
Financial and Operational Performance Overview
Revenue and Profitability Metrics
Airbus reported H1 2025 revenues of €29.6 billion, a 3% increase from €28.8 billion in H1 2024. This growth was primarily driven by higher order volumes, despite a decrease in aircraft deliveries from 323 to 306 units. The adjusted EBIT rose significantly to €2.2 billion, up from €1.4 billion in the previous year, indicating improved operational efficiency and favorable pricing dynamics.
The reported EBIT stood at €1.6 billion, reflecting a modest 7% increase year-over-year. However, free cash flow before mergers and acquisitions was negative at -€1.6 billion, compared to -€0.5 billion in H1 2024. This decline is attributed to inventory buildup and delayed deliveries due to supplier constraints.
Net commercial aircraft orders surged to 402, up from 310 in H1 2024, while the overall backlog reached 8,754 aircraft. This signals strong long-term demand and positions Airbus favorably for the remainder of the year, as it aims to meet its full-year delivery target of 820 aircraft.
“We have a credible second-half plan,” said CEO Guillaume Faury, emphasizing confidence in meeting delivery targets despite H1 constraints.
Segment-Specific Performance
The Commercial-Aircraft division, Airbus’s largest revenue contributor, generated €20.8 billion in H1 2025, a slight decline from the previous year due to reduced deliveries. Adjusted EBIT for the segment fell by 12% to €1.7 billion, impacted by higher research and development costs and supply chain inefficiencies.
Airbus Helicopters delivered a strong performance, with revenues rising 16% year-over-year to €3.7 billion, driven by increased service activities. The segment’s adjusted EBIT improved by 8% to €249 million, reflecting a stable and growing demand for rotary-wing platforms.
The Defence and Space division reported revenues of €5.8 billion, a 16.6% increase from H1 2024. Notably, the segment rebounded from prior-year losses, recording an adjusted EBIT of €265 million compared to a negative €807 million in H1 2024. This recovery was supported by improved program execution and cost control.
Cash Flow and Order Backlog
Despite solid revenue growth, Airbus reported a negative free cash flow of -€1.6 billion. This was largely due to working capital build-up, including unfinished aircraft awaiting engines and other components. The company anticipates cash flow normalization in the second half of the year as deliveries accelerate.
The order backlog remains robust, with 8,754 commercial aircraft on order. This reflects sustained global demand, particularly for narrow-body aircraft like the A320neo, which continues to dominate order books amid airline fleet modernization efforts.
Airbus’s financial guidance for 2025 remains unchanged, with an adjusted EBIT target of €7 billion and 820 aircraft deliveries. These targets hinge on resolving supply chain bottlenecks and maintaining production momentum in H2 2025.
Strategic Developments and Industry Challenges
Supply Chain Disruptions
Airbus continues to grapple with component shortages, particularly engines for the A320 family. Delays from suppliers such as CFM International and Pratt & Whitney left around 60 aircraft undelivered at the end of June 2025. These disruptions have created delivery backlogs and impacted cash flow.
Another unexpected bottleneck emerged in the A350 program, where lavatory unit shortages delayed aircraft completion. This highlights the fragility of extended supply chains and the importance of even minor components in final assembly.
To mitigate such risks, Airbus has postponed the acquisition of certain Spirit AeroSystems work packages to Q4 2025. These include A350 fuselage sections and A220 wings, which Airbus aims to insource to enhance supply chain control. The delay is partly due to regulatory approvals tied to Boeing’s parallel acquisition of Spirit’s commercial operations.
“You can’t really build an airplane without a toilet,” quipped Christian Scherer, Airbus’s Commercial Aircraft Director, underscoring the complexity of aircraft manufacturing.
Market and Political Environment
A significant positive development was the EU-US agreement to revert to a zero-tariff regime for civil aircraft. This move ends a long-standing trade dispute and reduces cost pressures for Airbus in its key transatlantic market. CEO Guillaume Faury welcomed the agreement, calling it “a welcome development for our industry.”
Airbus also benefits from strong global aircraft demand. According to its Global Market Forecast 2025–2044, the company anticipates 43,420 new aircraft deliveries over the next two decades, driven by growth in Asia and the Middle East. These regions are experiencing annual traffic growth rates of up to 8.9%, necessitating fleet expansion and modernization.
Nonetheless, geopolitical uncertainties and potential shifts in trade policy remain a concern. Airbus continues to monitor developments in global trade relations, particularly in light of ongoing tensions between major economies.
Strategic Positioning and Long-Term Outlook
Airbus’s strategic focus includes increasing vertical integration to reduce reliance on external suppliers. The Spirit AeroSystems acquisition is a step in this direction, aligning with broader industry trends toward insourcing critical components.
The company is also emphasizing regional diversification, with production sites in Morocco, the U.S., and Scotland. This approach aims to decentralize manufacturing and reduce exposure to localized disruptions.
Looking ahead, Airbus is investing in next-generation propulsion technologies, including hydrogen-powered aircraft, to meet Sustainability goals. These initiatives align with the Global Market Forecast’s emphasis on fleet modernization and emissions reduction.
Conclusion
Airbus’s H1 2025 results reflect a company navigating complex operational challenges while maintaining strategic clarity and financial stability. Revenue growth, increased net orders, and a robust backlog highlight the strength of its market position. However, supply chain disruptions continue to affect deliveries and cash flow, necessitating adaptive measures such as vertical integration and diversified sourcing.
As Airbus enters the second half of 2025, its ability to meet delivery targets and execute strategic acquisitions will be critical. The resolution of trade disputes and sustained global demand provide a favorable backdrop, but ongoing vigilance in supply chain management and geopolitical risk assessment remains essential. The company’s long-term focus on sustainability and innovation positions it well for future growth in a rapidly evolving aerospace landscape.
FAQ
What were Airbus’s revenues in H1 2025?
Airbus reported revenues of €29.6 billion ($34 billion) in the first half of 2025.
How many aircraft did Airbus deliver in H1 2025?
The company delivered 306 commercial aircraft, down from 323 in H1 2024.
What caused the Delivery delays?
Delivery delays were primarily due to engine shortages from suppliers and a bottleneck in lavatory unit supplies for the A350 program.
What is the Spirit AeroSystems acquisition?
Airbus plans to acquire certain Spirit AeroSystems work packages to improve supply chain control. The deal has been delayed to Q4 2025.
How is Airbus addressing sustainability?
Airbus is investing in hydrogen propulsion and fleet modernization to meet long-term environmental goals.
Sources
- Airbus H1 2025 Results Press Release
- WebDisclosure
- Airbus Investor Page
- H1 2025 Detailed Financials
- Simple Flying
- ATCNews
- Airbus Financial Results
- WebDisclosure H1 2024
- H1 2024 Press Release
- Skies Mag
- Business Times
- EPlaneAI
- FlightGlobal
- Airbus Global Market Forecast
- Wikipedia
- GMF 2025 Press Release
- Wise EUR-USD Exchange Rate
Photo Credit: Reuters
Commercial Aviation
BOC Aviation Leases Eight A321neo Jets to STARLUX Airlines
BOC Aviation signs lease for eight CFM LEAP-1A-powered A321neo aircraft with STARLUX Airlines, deliveries from 2028.
BOC Aviation Limited has finalized a lease agreement with Taiwan-based STARLUX Airlines for eight Airbus A321neo aircraft, a transaction that will expand the carrier’s narrowbody fleet to support regional network growth.
Announced in a press release on July 1, 2026, the aircraft will be sourced directly from the Singapore-based lessor’s existing orderbook. Deliveries to STARLUX Airlines are scheduled to commence in 2028, providing the airline with additional capacity as it continues to scale its international operations.
Fleet Expansion and Technical Specifications
The eight leased narrowbody jets will be powered by CFM International LEAP-1A engines. The Airbus A321neo selection aligns with STARLUX Airlines’ strategy to operate modern, fuel-efficient aircraft across its regional routes.
Paul Kent, Chief Commercial Officer at BOC Aviation, highlighted the operational benefits of the aircraft type for the growing Taiwanese carrier.
“The A321NEOs that will be delivered to STARLUX from 2028 are amongst the most fuel-efficient aircraft in production and should demonstrate their versatility in supporting the airline’s regional network growth,” Kent stated.
Strategic Growth for STARLUX and BOC Aviation
The lease agreement supports STARLUX Airlines as it broadens its route network. The carrier currently serves 32 destinations and is actively expanding its international reach. This includes preparations to launch its first European route, with service to Prague scheduled to begin on August 1, 2026.
For BOC Aviation, the transaction reinforces its leasing footprint in the Asia-Pacific market. As of March 31, 2026, the lessor reported a portfolio of 813 aircraft and engines, encompassing owned, managed, and on-order assets. The company’s global customer base includes 88 airlines across 46 countries and regions.
“We are delighted to be supporting Taiwan’s newest international airline with this landmark transaction for eight latest technology aircraft,” Kent added in the July 1 announcement.
AirPro News analysis
We view this transaction as a mutually beneficial alignment of BOC Aviation’s robust orderbook and STARLUX Airlines’ aggressive expansion timeline. By securing delivery slots for 2028 through a major lessor, STARLUX Airlines bypasses the extended backlog currently facing direct orders from Airbus SE. The choice of the Airbus A321neo equipped with CFM LEAP-1A engines provides the carrier with the range and economics necessary to deepen its regional footprint in Asia while it simultaneously deploys widebody aircraft on new long-haul routes to Europe and North America.
Sources: BOC Aviation
Photo Credit: STARLUX Airlines
Commercial Aviation
World Star Aviation Delivers Second 737-400SF to Skyway Airlines
World Star Aviation completes a two-aircraft lease with Skyway Airlines, delivering a second 737-400SF freighter to the Philippine cargo carrier.
World Star Aviation (WSA) has finalized a two-aircraft lease agreement with Philippine cargo operator Skyway Airlines Inc. through the delivery of a second Boeing 737-400SF freighter.
Announced in a company press release on June 26, 2026, the handover increases Skyway’s total fleet to three aircraft. The addition is intended to support the carrier’s network expansion across the Asia-Pacific region.
Completing the two-aircraft agreement
The delivery concludes an arrangement that began with a letter of intent signed in June 2025. World Star Aviation delivered the first Boeing 737-400SF of the pair on October 27, 2025. That initial handover marked the lessor’s first registered cargo-aircraft in the Philippines.
Skyway Airlines Inc. Chief Executive Officer José Peralta stated the new capacity will directly support regional operations.
“It is with great excitement that we welcome our third aircraft, the second one from WSA. This addition will further enhance Skyway’s network within the Asia-Pacific region. We are grateful to WSA for their professionalism and dedication in delivering this aircraft,” Peralta said.
Lessor strategy and regional growth
For World Star Aviation, the transaction reinforces its footprint in the Asia-Pacific cargo sector. The lessor has positioned itself to supply converted narrowbody freighters to growing regional operators.
André Abreu, Vice President Marketing & Sales at World Star Aviation, highlighted the ongoing collaboration between the two companies.
“This second delivery reflects the strong relationship WSA has built with Skyway Airlines since its debut as a cargo airline. We are grateful for Skyway’s continued trust in our team and proud to support the airline’s growth with cost-effective freighter solutions,” Abreu said.
AirPro News analysis
We view the continued reliance on Boeing 737 Classic freighters, such as the 737-400SF, as a practical strategy for emerging cargo airlines in the Asia-Pacific market. While newer generation conversions like the Boeing 737-800BCF are becoming more prevalent, the 737-400SF offers a lower capital entry point for operators looking to scale capacity quickly. Skyway’s decision to triple its fleet over the past year indicates strong regional demand for dedicated narrowbody freight services.
Sources: World Star Aviation
Photo Credit: World Star Aviation
Commercial Aviation
Emirates SkyCargo Launches Boeing 777-300ERSF Operations
Emirates SkyCargo becomes the first combination carrier to operate the Boeing 777-300ERSF, flying Hong Kong to Dubai on June 30, 2026.
Emirates SkyCargo has commenced commercial operations with its first Boeing 777-300ERSF, completing an inaugural flight from Hong Kong to Dubai on June 30, 2026. The deployment makes the Dubai-based operator the first combination carrier to utilize the passenger-to-freighter converted aircraft, commonly known in the industry as the “Big Twin.”
In a press release issued on June 30, 2026, Emirates detailed the integration of the converted freighter, registered as A6-EBK, into its expanding logistics network. The aircraft introduces a 25 percent increase in cargo volume compared to the production Boeing 777-F, targeting the high-volume, low-density requirements of the global e-commerce sector.
Fleet expansion and capacity metrics
The introduction of the Boeing 777-300ERSF marks the sixth freighter inducted into the Emirates SkyCargo fleet since March 2026, following the delivery of five production Boeing 777-F aircraft. The converted airframe provides 811 cubic meters of cargo volume and a payload capacity of 100 tonnes.
The spatial design of the 777-300ERSF accommodates 47 total pallet positions, which is 10 more than the standard Boeing 777-F. This volumetric advantage aligns with shifting air freight demands, as e-commerce goods currently constitute approximately 20 percent of global air cargo tonnage.
Badr Abbas, Divisional Senior Vice President of Emirates SkyCargo, stated that the induction represents the next step in the expansion of the fleet and operational agility.
“We are optimising our fleet assets by converting older Boeing 777-300ER passenger aircraft to meet the growing demand for air cargo capacity to transport goods rapidly across the world,” Abbas said.
The Big Twin conversion program
The Boeing 777-300ERSF conversion program is a joint venture launched in 2019 by aircraft lessor AerCap and Israel Aerospace Industries (IAI). The modification process engineers older passenger airframes into dedicated freighters, extending the operational lifecycle of the Boeing 777-300ER.
The specific aircraft deployed by Emirates, A6-EBK, was originally delivered to the airline as a passenger jet in 2006. The conversion program achieved regulatory clearance in September 2025, receiving its Supplemental Type Certificate (STC) from the FAA and the Civil Aviation Authority of Israel (CAAI).
Emirates plans to continue its fleet expansion through the end of the year. The carrier expects Delivery of five additional Boeing 777-F aircraft and one more converted Boeing 777-300ERSF by December 2026. Three additional converted Boeing 777-ERSFs are scheduled to join the fleet in 2027.
Network growth and strategic positioning
The rapid induction of new capacity has facilitated a significant expansion of the Emirates SkyCargo route map. The carrier’s global freighter network has grown from just over 40 destinations in February 2026 to 62 current destinations.
Abbas noted that the combination of the growing Boeing 777-F fleet and the new converted freighters allows the airline to provide scalable capacity and connectivity through its Dubai hub.
AirPro News analysis
We view the deployment of the Boeing 777-300ERSF by a major combination carrier like Emirates as a strong validation of the IAI and AerCap conversion program. While purpose-built freighters like the Boeing 777-F remain the backbone of heavy lift operations, the volumetric efficiency of the 777-300ERSF fills a specific and growing niche. With e-commerce driving demand for space over sheer weight, converting fully depreciated passenger airframes offers a capital-efficient method to capture market share. The aggressive delivery schedule through 2027 indicates Emirates is positioning itself to dominate the high-volume logistics corridors connecting Asia, the Middle East, and Europe.
Sources: Emirates
Photo Credit: Emirates
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