Airbus aims to dampen market fears

Airbus revealed an increase in profits that helped to scotch concerns that the commercial aerospace cycle was weakening.
Airbus revealed an increase in profits that helped to scotch concerns that the commercial aerospace cycle was weakening.
0
Have your say

Airbus yesterday reported first-half underlying operating profit up 10 per cent and reaffirmed its forecasts for the year, seeking to dampen concerns among some investors about the health of the commercial jetliner market.

The Franco-German group also said it continued to study options for selling its 46 per cent stake in French planemaker Dassault Aviation, inherited from one of the mergers that led to the creation of Europe’s largest aerospace company.

Its basic 2015 business outlook remained unchanged before the cost of developing a new version of the A330 passenger jet announced at this month’s Farnborough Air- show.

Launching the revamped version of its most profitable wide-bodied jetliner at the UK event, Airbus said its development costs would trim 0.7 percentage points off its 2015 return-on-sales target of 7-8 per cent. Shares in the group have fallen around 8 per cent since the announcement on fears that the commercial aerospace cycle may be weakening and signs that Airbus may have to cut output of the A330 even after equipping it with newer engines to boost sales.