Airbus Is Back on Track
Airbus had disappointed the markets as recently as the first quarter. Problems with engine deliveries (including from Pratt & Whitney), production issues, and delays in aircraft deliveries led to a weak start to the year. In the second quarter, however, the Franco-German conglomerate regained momentum. The aforementioned problems were largely resolved, and this was reflected in the numbers. The group was able to deliver 237 commercial aircraft, an increase of about 39% compared to the 170 aircraft delivered in the same quarter of the previous year. For the first half of the year as a whole, deliveries totaled 351 aircraft (+15%). Adjusted EBIT rose by 54% to approximately EUR 2.43 billion. All in all, Airbus nearly doubled its profit, with EPS rising from EUR 1.93 to EUR 2.84.
Airbus’s stock has been rising very steadily since April, albeit with some fairly volatile corrections. For the full year, the company still aims to deliver around 870 commercial aircraft, which will require a strong second half of the year. Free cash flow, excluding customer financing, is expected to come in at around EUR 4.5 billion. The focus is currently primarily on expanding production. Monthly deliveries of the A320neo family are expected to rise steadily, as are production capacities for long-haul aircraft such as the A350. In addition, Airbus’s strategy remains to expand into the defence, security solutions, and satellite systems sectors to reduce the cyclical nature of the aircraft business.
The majority of analysts continue to recommend buying Airbus shares. The main reasons cited are the large order backlog and the long-term growth potential in the commercial aviation sector. Here, the order backlog stands at 9,222 aircraft. Of these, 821 orders were placed in the first half of 2026. Orders for the A320 family alone extend well into the coming decade. Consensus price targets range from EUR 215 to EUR 230, which is only a few percent above the current price. The highest price target comes from Barclays and stands at EUR 260.
Volatus Aerospace: Benefiting from the Crisis of Confidence
Volatus Aerospace has entered into a strategic partnership with the established US company Kraus Hamdani Aerospace in the field of aerial reconnaissance. Under the agreement, Volatus will establish the framework in Canada for the deployment of the K1000ULE unmanned aerial vehicle (UAV) as well as the aerial communications and network infrastructure, Aerial Tier Network Extension (ATNE++). In addition, the phased establishment of Canadian manufacturing operations at the Volatus aerospace facility in Mirabel, Québec, will be advanced.
The partnership aims to strengthen Canada’s ability to detect and respond to rapidly developing wildfires. The technology can also be used in the field of military reconnaissance. Kraus Hamdani Aerospace is known in the US for its K1000ULE (Ultra-Long Endurance) model. The drone combines rechargeable batteries with integrated solar cells on its wings. It set a world record in the “Group 2 UAS” category (drones under 25 kg) with over 75 hours of continuous flight. What makes it special: despite a wingspan of 5 m, it weighs only about 19.3 kg, can be transported in the trunk of a car, and does not require a runway for takeoff or landing. This is an enormous advantage during wildfires in Canada. Added to this is the drone’s ability, through the Aerial Tier Network Extension, to act as a kind of flying cellular and data hub. This enables communication without the need for extensive infrastructure. Kraus Hamdani Aerospace also supplies the defence industry in the US.
Through this partnership, Volatus Aerospace is expanding its broad range of drones and software for unmanned aerial vehicles. The Canadian company already has a sales pipeline of CAD 500 million. In terms of customers, the company is fully focused on allied NATO countries and Canada itself. The latter is considered one of NATO’s largest military markets. The Canadian government plans to spend more than two-thirds of its national defence budget, approximately USD 80 billion, domestically in the future. Volatus is likely to be one of the first points of contact in the field of drone technology.
Volatus Aerospace appears to have put the correction, which has persisted since the start of the war in the Persian Gulf, behind it. Within just a few weeks, the share price recently rose by more than 15%. However, there is still plenty of room to reach the year-to-date high of CAD 0.88.
Lufthansa: The Desire to Travel vs. Kerosene Costs
There is little sign of the weak performance of the German economy at Lufthansa. Passenger volume continued to rise in the second quarter—driven by very high demand in the premium segment (Business/First Class) and on long-haul routes to North America and Asia. Lufthansa achieved a strong load factor, the so-called seat load factor, of over 82%. And this holds true globally as well. Just recently, Flightradar24 reported the day with the most flight movements in human history. On July 23, 2026, 153,359 commercial flights were recorded within a 24-hour period. This surpassed the previous record of 137,225 flights set on July 13, 2023, by roughly 12%.
From a financial standpoint, things look a bit bleak for Lufthansa. And this is due neither to the weak German economy nor to a decline in the desire to travel. Instead, significant increases in jet fuel costs, as well as one-time effects resulting from strikes in the spring, had a negative impact. As a result, additional fuel expenses in Q2 rose by approximately EUR 750 million compared to the previous year. According to the company, 60% of these additional costs were offset by higher ticket prices and average revenue.
This trend was then reflected in the profit figures. Operating profit (adjusted EBIT) came in at EUR 383 million, down 56% from the previous year. Net profit plummeted by as much as 88%. The bottom line was a profit of just EUR 123 million for the group. Ultimately, the company only turned a profit through its subsidiaries Lufthansa Technik and Lufthansa Cargo. At least revenue posted a solid increase of 8% to EUR 11.4 billion.
Management is therefore focusing primarily on cost reductions and the optimization of administration and the route network. In addition, the fleet is being further modernized to save fuel. Kerosene costs are likely to remain high in light of recent developments in the Persian Gulf. For the full year, Lufthansa expects additional costs totaling EUR 1.7 billion. The stock has recently fluctuated largely in tandem with the oil price. An investment would likely be advisable only for those who are absolutely optimistic about the war.
Airbus is back on track operationally. The stock is a good fit for a long-term portfolio thanks to its large order backlog. With Volatus, investors can bet on the triumph of drone technology in both the civilian and military sectors. At Lufthansa, however, high kerosene costs are causing trouble. Investors would likely be better off waiting it out here.
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