Airbus // Universal Registration Document 2023

Risk Factors 2 Business and Operations-related Risks

2. Business and Operations-related Risks

Commercial Aircraft and Helicopter Market Factors

Historically, the Company has experienced that the commercial aircraft market and order intake for commercial aircraft shows cyclical trends, reflecting changes in demand for passenger air travel and air freight, which in turn largely correlate to a range of economic variables, such as GDP growth, private consumption levels and working age population size. Other factors playing an important role in determining the market for commercial aircraft include (i) the average age and technical obsolescence of the fleet relative to new aircraft; (ii) the number and characteristics of aircraft taken out of service and parked pending potential return into service; (iii) passenger and freight load factors; (iv) airline pricing policies and resultant passenger yields; (v) airline financial health; (vi) the availability of third party financing for aircraft purchases; (vii) fuel price evolution; (viii) the regulatory environment; (ix) environmental constraints imposed upon aircraft operations, such as the Carbon Offsetting and Reduction Scheme for International Aviation (“ CORSIA ”), carbon standards and other environmental taxes; and (x) market evolutionary factors such as the volume of business-related travel, the growth of low-cost passenger airline business models, the impact of e-commerce on air cargo volumes or the consolidation of airlines. In the future, other factors (such as the availability of SAF) may impact the market. Geopolitical, global economic and financial market conditions can further amplify these factors. Please also refer to “Geopolitical, global economic and financial market risks”. The factors described above may have a material impact on the commercial aircraft industry and, therefore, on the Company’s financial condition and results of operations. In support of aircraft sales and deliveries, the Company may from time to time participate in financing solutions for its customers. From 2021 through 2023, the average number of aircraft delivered in respect of which financing support has been provided by Airbus amounted to approximately 1% of the number of deliveries over the same period. Airbus has a policy to sell-down such financing exposure when market conditions are sufficiently favourable, and to not hold such exposure over the longer term. The risks arising from the Company’s sales financing activities may be classified into two categories: (i) credit risk, which relates to the customer’s ability to perform its obligations under a financing arrangement, and (ii) aircraft residual value risk, which primarily relates to unexpected decreases in the future value of aircraft. Defaults by its customers or significant decreases in the value of the financed aircraft in the resale market may materially adversely affect the Company’s business, results of operations and financial condition. The Company’s sales financing arrangements expose it to credit risk and aircraft residual value risk, because it generally retains security interests in aircraft for the purpose of securing customers’ performance of their financial obligations to Sales Financing Arrangements

In 2023, the commercial aircraft business of Airbus recorded total revenues of approximately € 47.8 billion – representing approximately 72% of the Company’s revenues. For information on revenue by segment, please refer to the “Notes to the IFRS Consolidated Financial Statements – Note 11: Segment Information”. While historically downturns in its commercial aircraft business have been partially mitigated by its defence, space and government activities, the significant growth of the Company’s commercial aircraft business relative to its other activities in recent years has significantly diminished this effect. The commercial helicopter market in which the Company operates has shown cyclical trends and could also be influenced by factors listed above. In 2023, with 715 bookings identified, the overall market was back to its pre-pandemic levels. In comparison with 2022, this represents a slight increase of 1%. From 2022 to 2023 the demand for helicopters increased in most of the mission segments, including aerial work, public services, emergency medical services (EMS) and energy. Market demand decreased substantially in the commercial passenger transport and private and business aviation segments. There was a significant increase in demand for Super Medium, Light Twin and Medium Twin helicopters driven by the strong rebound in the energy segment and by the demand of the EMS segment. For further information on risks relating to specific commercial aircraft and helicopter programmes, please refer to “Business and operations-related risks – Programme-specific risks”. the Company. Under adverse market conditions, the market for used aircraft could become illiquid and the market value of used aircraft could significantly decrease below projected amounts. In the event of a financing customer default at a time when the market value for a used aircraft has unexpectedly decreased, the Company would be exposed to the difference between the outstanding loan amount and the market value of the aircraft, net of ancillary costs (such as maintenance and remarketing costs, etc.). Through the Airbus Asset Management department or as a result of past financing transactions, the Company is the owner of used aircraft, exposing it directly to fluctuations in the market value of these used aircraft. In addition, the Company has “backstop” commitments to provide financing related to orders on the Company’s and ATR’s backlog. The Company’s sales financing exposure could rise in line with future sales growth depending on agreements reached with customers and the market conditions at such time. The Company remains exposed to the risk of defaults by its customers or significant decreases in the value of the financed aircraft in the resale market, which may have a negative effect on its future financial condition and results of operations.

12 Airbus Annual Report

Universal Registration Document 2023