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FACC records significant growth in Q1 2022

Adam GavineBy Adam GavineMay 5, 20222 Mins Read
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FACC's production line for A320 stowage bins

FACC AG reports that its financials from the first quarter of 2022 show that the aviation industry is continuing to stabilise. The company’s Q1 sales increased by 7.90% (compared with Q1 2021), to EUR 127.5 million.

According to FACC the reason for this positive trend is the “favourable order situation” for short- and medium-haul aircraft, as well as orders in the business jet segment. EBIT is positive at EUR 3 million, which is also due to measures taken by the company to reduce costs and increase efficiency.

Further recovery of the aviation industry

The company says that the aviation industry’s post-pandemic recovery continued in Q1 2022, with continental air traffic in particular exhibiting “very positive” signs of development, especially in the USA and the Middle East. This trend is accompanied by an increase in demand for short- and medium-haul aircraft – a market segment that particularly benefits FACC.

The growth in the business jet segment is also encouraging, with FACC saying this market fully recovered in Q4 2021. Around 17% of FACC’s consolidated sales originate from this segment. New orders for the Bombardier Challenger 3500 and the Falcon 10X confirm this growth trend in the business jet market.

New orders

“As things stand today, we continue to expect an increase in sales of around 10% for 2022 as a whole,” stated Robert Machtlinger, CEO of FACC AG.

He reports that solutions for cabin interiors are also in high demand, and with the company’s newly constructed plant in Croatia, for which the next expansion stage is already being planned, the company is well equipped for further growth in this area.

FACC has found that the war in Ukraine, and the resulting repercussions such as sanctions, have had little impact on FACC, as the company does not have supply chains in either Ukraine or Russia. The volume of FACC aircraft components supplied annually for Russian civil applications amounts to approximately EUR 1 million per business year.

Outlook

Following the successful operational turnaround in 2021, FACC will again focus on growth in 2022. A growth in sales of approximately 10% is expected for the 2022 financial year, while the planned EBIT is projected to more than triple compared to the operating results in 2021 (excluding one-off effects).

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Adam Gavine
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Adam loves air travel, and since taking on the Aircraft Interiors International brand he has really enjoyed the opportunity to be involved with the latest aircraft and airline products before they are even launched. Adam co-ordinates the growth of the brand platform, and sits on various panels, including the Crystal Cabin Awards

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