Airbus’s commercial aircraft services sales rose to €1.2 billion (approximately $1.29 billion) in the first quarter of 2024, from €959 million (approximately $1.03 billion) the year before.
Rival OEM Boeing also reported higher revenues for its Global Services business, to $5 billion from $4.7 billion year-on-year for the first quarter, although its figures include defense business. Boeing said the increase was due to higher commercial aircraft services volume and a favorable mix.
For comparison, Airbus’ consolidated services sales—across its commercial aircraft, helicopter and defense and space arms—rose to €2.85 billion ($3.07 billion) from €2.47 billion ($2.66 billion) year-on-year.
Boeing’s profit margin from service was the best across its business, at around 18%, which CEO Dave Calhoun said was significantly helped by the company’s decision to purchase parts distribution businesses Aviall and KLX, in 2006 and 2018, respectively.
Calhoun said the company should realize his long-held ambition to fully integrate those businesses into the Boeing brand, which he thinks will drive further profitability and help simplify the business.
Airbus, meanwhile, has embarked on a significant expansion of its aftermarket activities by opening an aircraft storage and part-out facility in Chengdu, China.
Announced earlier this year, the Airbus Lifecycle Services Center will also handle maintenance, conversions and upgrades from its 7.7 million ft.2 facility, which is a joint venture between Airbus, local government in China and aircraft storage and dismantling specialist Tarmac Aerosave.
Tarmac aims to recover all but 10% of a retired aircraft’s weight through part-out and recycling, although it appears that a big focus of the facility is extending the lives of aging aircraft, as Airbus expects 75% of the aircraft that pass through the center to fly again after storage, upgrade or conversion.
