Safran has released some key financials for its performance in the six-month period ended 30th June, 2024 (H1 2024), with cabin interiors activities being very positive.
Safran’s overall adjusted revenues for the first half of 2024 stood at €13,047 million, up by 19.2% compared to H1 2023 (+18.7% on an organic basis). Safran expects to achieve revenues of around €27.4 billion for the full-year 2024.
Organic revenue for Safran’s aircraft interiors division increased by 26.6% in the period (albeit 14% below 2019’s level), a significant growth that the company says demonstrates ‘the appetite of airlines for cabin retrofits’.
In H1 2024, recurring operating income reached €1,974 million, representing a substantial increase of +41% (+39% organic), driven by growth in services across the board and to OE ramp-up in the Equipment & Defence and Aircraft Interiors sectors.
Safran expects to achieve a recurring operating income of close to €4.0 billion for the full-year 2024. Safran’s aircraft interiors division posted a positive recurring operating income of €10 million, representing a substantial improvement of €110 million from H1 2023.
Safran Cabin’s performance was supported by a good level of activity in services and, to a lesser extent, OE deliveries. Incomes for Safran Seats strongly improved in H1 2024, partly thanks to the contribution from services and higher volumes. Safran says that ongoing efforts in the industrialisation process continued to yield positive results in OE activities.
Additionally, Safran Passenger Innovations made a positive contribution to recurring operating income, largely due to its sales of in-flight entertainment (IFE) products.
Aftermarket activities were particularly dynamic in both the Safran Cabin sector (mainly spare parts) and Safran Seats (notably with Asian and US airlines), driven by the recovery of the widebody market and the positive momentum in air traffic.
Safran primarily attributes its OE sales growth to seating activities, especially the strong growth of business-class seat deliveries (750 units in H1 2024 vs 436 in H1 2023).
Key business-class products offered by the Safran Seats division are Optima, Fusio, Aura Enhanced, Unity, Skylounge Core, Versa, Vue, and the Z600.
Safran’s CEO, Olivier Andriès, said of the H1 results: “Safran has made a strong start to the year with operating margin exceeding 15% of sales. This result is due primarily to the growth of aftermarket activity for engines and aircraft equipment, but also through reaching operating breakeven in aircraft interiors activities, with a substantial year-over-year improvement.
“Going forward, our primary objective is to manage continuously supplier performance in order to meet our customer commitments, particularly regarding new engine deliveries, and to mitigate any associated impacts,” added Andriès. “We are very confident in our ability to achieve our 2024 financial guidance, particularly for the operating result, with some pressure on cash flow notably related to the timing of advance payments.”
