Airbus profits fall 30 percent, hit by delivery delays

April 27, 2018
Earlier this month, Airbus said it would step up production of its A320neo planes despite persisitent engine woes

Airbus saw its profits plunge by 30 percent in the first quarter of 2018 due to delays in delivery of its A320neo engines but still plans to supply 800 aircraft this year, the company said Friday.

Its net income dropped to 283 million euros ($342 million) from 409 million euros for the same period last year.

"The first-quarter performance reflects the shortage of A320neo engines," Airbus chief executive Tom Enders said in a statement.

"It's a challenging situation for all but based on the confidence expressed by the makers and their ability to deliver on commitments, we can confirm our full-year outlook," he added.

"This still leaves us with plenty to do this year to reach the target of around 800 commercial aircraft deliveries."

The European plane maker posted adjusted net earnings of 14 million euros—a better result than the marginal loss forecast by analysts, Bloomberg News reported.

Earlier this month, Airbus announced it would boost production of its A320 aircraft, despite problems in its supply chain.

The A320neo is a more fuel-efficient version of the Airbus company's best-selling airliner, the A320.

The planes are equipped with a new generation of engines and have aerodynamic modifications that allow airlines to save 15 percent on fuel, which is a major operating cost.

The medium-range, single-aisle Airbus aircraft and similarly upgraded Boeing planes have attracted thousands of orders as airlines seek to ensure they remain competitive in the future.

Some 181 A320neo were delivered in 2017, up from 68 during 2016.

But the new engines have suffered from technical glitches and delays and Enders earlier admitted that "the A320neo ramp-up remains challenging".

Airbus has been weakened recently by major corruption investigations in Britain and France, as well as Germany and Austria, that have cast a pall over one of Europe's most successful companies.

It has also faced challenges with the A380 superjumbo, the world's largest civilian airliner, as well as over-budget military transporter A400M.

In March it announced plans to cut around 3,700 jobs on the A380 and A400M programmes.

Also last month, Airbus said it would name a successor to Enders at the end of 2018, as part of a major shake-up of top management.

Explore further: Airbus aiming to step up A320neo production

Related Stories

Airbus aiming to step up A320neo production

April 11, 2018

Airbus aims to boost production of its A320neo aircraft and step up deliveries in the second quarter of the medium-haul carrier despite persistent engine woes, chief executive Tom Enders said Wednesday.

Airbus profits soar despite new charge on A400M military plane

February 15, 2018

Airbus said Thursday that increased deliveries, windfall gains from divestments and favourable exchange rates enabled profits to take off last year, even though it booked a "substantial" new charge on its A400M military transporter ...

Recovering SAS orders 50 Airbus A320-neos

April 10, 2018

SAS said Tuesday it had ordered 50 Airbus A320-neos for its short and medium-haul routes, a sign of improving fortunes for the Scandinavian carrier after some difficult years.

Airbus to axe 3,700 jobs in Europe

March 7, 2018

Aircraft giant Airbus is to axe around 3,700 jobs in Europe as it cuts back production of its troubled A380 superjumbo and A400M military transporter, the company and union officials said Wednesday.

Recommended for you

Study: With Twitter, race of the messenger matters

February 23, 2019

When NFL player Colin Kaepernick took a knee during the national anthem to protest police brutality and racial injustice, the ensuing debate took traditional and social media by storm. University of Kansas researchers have ...

After a reset, Сuriosity is operating normally

February 23, 2019

NASA's Curiosity rover is busy making new discoveries on Mars. The rover has been climbing Mount Sharp since 2014 and recently reached a clay region that may offer new clues about the ancient Martian environment's potential ...

Researchers engineer a tougher fiber

February 22, 2019

North Carolina State University researchers have developed a fiber that combines the elasticity of rubber with the strength of a metal, resulting in a tougher material that could be incorporated into soft robotics, packaging ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.