French aerospace firm Safran’s aircraft interiors division has narrowly edged into operating profit for the first half, turning around a heavy loss at the same point last year.
The division, which generated a €100 million ($108 million) interim loss in 2023, posted a €10 million profit for the six months to 30 June.
Safran highlights a recovery in its seating activity, with 750 business-class seats delivered compared with the previous figure of 436.
It attributes the interiors division’s original equipment sales growth primarily to the improvement in its seats business.
But group chief financial officer Pascal Bantegnie, speaking during a 31 July briefing, cautioned: ”This is not an easy journey. Seats still have to execute a strong step-up in deliveries in [the second half].”
Recovery in the widebody market, it adds, led to “particularly dynamic” aftermarket activity in cabin equipment – mainly for spares – and seats.
Overall revenues for the division reached €1.41 billion, up by 21.3%.
Safran acknowledges that the figure is still 14% below the €1.64 billion achieved in the first half of 2019, prior to the Covid-19 pandemic.
It points out, however, that the division recorded strong organic revenue growth of 26.6% which, it says, demonstrates the “appetite of airlines for cabin retrofit”.
Bantegnie says profitability for the interiors arm has “finally been restored” but states that work must continue to reach a “decent” level of margin.
He adds: “The weak point today remains excessive cash consumption, resulting from engineering expenses and unfavourable effects of working capital requirements. And we are obviously working on that.”
