The aviation sector is in the middle of its Q3 reporting period. Here are this week’s (not exhaustive) highlights.
The US aircraft manufacturing giant is continuing through turbulent delivery schedules, with 737 production hit by non-safety critical mistakes, while increasing commercial sales by 25% compared to the same period in 2022.
The Seattle-based firm recorded a 13% rise in quarterly revenue to $18.1bn and a net loss of $1.6bn.
President and CEO Dave Calhoun said: “We continue to progress in our recovery and despite near-term challenges, we remain on track to meet the financial goals we set for this year and for the long term”.
Boeing shares dropped 2.5% on the release on 25 October.
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Air France-KLM shares dropped to a historic low on the publication of its Q3 report.
Despite the Franco-Dutch company registering a third-quarter income surge to €1.34 billion ($1.4 billion), stockbrokers were put off by the potential for trouble in the global aviation sector outlook.
While analysts said AF-KLM earnings were generally as expected, Citi noted a lag in 2023 Q4 bookings compared to the respective levels at this point in 2022.
None of this has put AF-KLM management off, with investment in Scandinavian Airlines confirmed and reported interest in the Portuguese carrier TAP.
IAG, which owns British Airways and Iberia among others, was among several airlines or airline parent companies to report a bumper quarter but saw its share prices tank nonetheless.
The firm said its profits rose 56% as its capacity continued to grow as passengers continued to return to flying, and revenues topped €18.6bn ($19.6bn).
But in his note to investors, CEO Luis Gallego noted “We are very mindful of the geopolitical and macroeconomic uncertainties and in particular now the events that are happening in the Middle East”.
While he added that revenue losses from cancelled flights are “limited”, the note perhaps spooked investors on fears of an oil crisis with tensions in the region showing little sign of abatement.
As such, IAG’s shares dropped by approximately 3% when its Q3 report was published.
Texas-based American filed what can be described as a mixed Q3 report. Despite recording revenues of $13.5bn, the major US airline actually reported a net loss of $545m. It put this down to falling domestic demand in the US and rising fuel costs.
Because of this, the airline lowered its full-year profit forecasts, and its share price dropped 1.5% in response.
Delta Airlines reported operating revenue of $14.6bn, demonstrating a 13% increase in comparison to the same period in 2022.
Delta has further disclosed its full-year expectations, which include an adjusted revenue growth of 20% over 2022 with a double-digit operating margin. Read more here.
The US carrier reported a pre-tax income of $1.5bn at a 10.3% margin. That’s slightly higher than an aggregate of analysts’ expectations.
That means United’s Q3 revenue was up by 12.5% on the year, which it said is “a record quarter and near the high end of guidance”.
Read the full story here.