Airbus reports jump in Q1 profits and sticks to full-year forecasts despite Trump’s tariff onslaught
The company supplies major U.S. airlines but 25% tariffs on steel and aluminum imports could significantly raise plane prices for American buyers.
European plane maker Airbus said Wednesday that it was sticking to its full-year forecasts for now, including delivery of around 820 aircraft, even though uncertainty over US tariffs has roiled supply chains worldwide.
"We maintain the guidance that excludes tariffs, which are adding complexity and remain uncertain in terms of implementation, scope and duration," chief executive Guillaume Faury said in a statement.
"We are closely monitoring and assessing the situation, but it is too early to quantify the impact today."
The cautious outlook came as Airbus announced a 33 percent rise in first-quarter net profit to 793 million euros ($900 million).
The company counts several major US airlines as clients and has an extensive manufacturing base in the United States.
But President Donald Trump's tariff onslaught -- including 25 percent duties on steel and aluminium imports -- could sharply push up plane prices for American buyers, including for Airbus's US rival Boeing.
Some airlines have already warned they will not be able to shoulder the extra costs in a highly competitive industry.
Airbus, which delivered 766 aircraft last year, is still planning to meet its full-year goals of around 7.0 billion euros of EBIT operating profit and free cash flow of 4.5 billion euros.
However, "the company assumes no additional disruptions to global trade or the world economy, air traffic, the supply chain, its internal operations and ability to deliver products and services".
This story was originally featured on Fortune.com
