Engineering & Aerospace News

Airbus predicts growth despite plane troubles

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Written by: Hannah Baker | Posted 15 February 2018 13:52

Airbus predicts growth despite plane troubles

Shares in Airbus soared today, Thursday 15 February, as the group announced annual profit and cash generation, despite writing off €1.3billion (£1.2billion) on its A400M military transport plane.

The aerospace giant, which has a division in Filton, Bristol, is now on track for its biggest share rise in nearly six years – with shares jumping 9.5 per cent this morning.

The aircraft maker says it is positive about earnings and future growth, with 2017 profits of €4.3bn – up from €3.9bn in 2016.

The announcement comes despite setbacks to some of Airbus’s key programmes, including the blighted A400M which crashed in 2015 during a test flight, leading to the deaths of four people.

Airbus chief executive Tom Enders said: “On A400M, we made progress on the industrial and capabilities front and agreed a re-baselining with government customers which will significantly reduce the remaining programme risks.

Read more: West of England Joint Committee urges government to protect GKN Filton jobs

“This is reflected in a substantial one-off charge. Overall, the strength of our 2017 achievements is reflected in our dividend proposal which is up 11 per cent against last year. This also endorses our earnings and cash-growth story for the future.”

He also credited "very good" operational performance, especially in the last quarter.

Mr Enders added: “Despite persistent engine issues on the A320neo, we continued the production ramp-up and finally delivered a record number of aircraft."

Airbus plans to deliver around 800 commercial aircraft this year if commitments are made by the engineering manufacturers – meaning a profit could increase by around 20 per cent in 2018.

Last month, shares in the company peaked after Emirates announced plans to buy at least 20 of the flagship A380 jets, which would keep the plane in production for at least 10 years.

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