Airbus confirms financial charges hit OneSat satellite programme

Airbus has officially acknowledged that its OneSat family of commercial telecom satellites has been affected by financial charges within its Space business. The confirmation comes after Airbus announced charges totalling 400 million euros related to unidentified satellite programs in November last year, with industry sources indicating that the OneSat family was among those impacted.

In its latest announcement on Thursday, Airbus disclosed an additional 200 million euros in charges, bringing the total charges for the year to 600 million euros. Despite the financial setbacks, Airbus CEO Guillaume Faury stressed the company's continued commitment to the OneSat program during a news conference.

Launched in 2019 with Inmarsat as its inaugural customer, OneSat offers mid-market geostationary satellites capable of in-orbit reconfiguration, catering to the evolving technological needs of the telecommunications sector. Airbus has secured contracts for nine OneSat satellites to date, with one sold to an undisclosed customer.

However, the commercial satellite market has witnessed disruption in recent years due to emerging competition, including the proliferation of low-Earth low-cost constellations. Airbus CFO Thomas Toepfer clarified that while OneSat is one of the programs involved in a recent portfolio review of the Space business, the 600 million euros in charges are not solely attributed to this program.

Of the total charges, 200 million euros are related to 2023, while the remainder pertains to previous or future years. Faury's recent remarks to staff underscored the company's stance on unexpected charges within its Space business, deeming them "not acceptable."

The financial challenges facing the OneSat program reflect broader uncertainties within Airbus's Space business amid evolving market dynamics and intensified competition.

(With Reuters inputs)