Economy

Airbus Reports Cut to A380 Production, More Worries Over A320neo

Airbus Reports Cut to A380 Production, More Worries Over A320neo”

Also on Thursday, Airbus posted second-quarter operating profits which fell 27% to 859m euros (£765m) on revenues of 15.27bn euros.

European planemaker Airbus said Thursday that net profits fell 17 percent to 1.5 billion euros ($1.8 billion) in the first half of the year due to problems with the engines for the new version of its top-selling A320 jet.

But Airbus had recently hinted of a further possible rate cut and it has disclosed, in its first-half financial update for 2017, that deliveries of A380s in 2019 will be "adjusted" to eight aircraft.

For the first half of the year, Airbus delivered a total of 59 A320neos against a full-year target of 200.

Pratt & Whitney's newly developed Geared Turbofan (GTF), which powers some of Airbus's upgraded A320neo jets, "should be a winning engine but they need to fix it", he told reporters. Qatar Airways already has cancelled delivery of four of the planes.

Deliveries of the double-decker will now fall from 15 this year to 12 in 2018 and eight in 2019, Airbus said.

The A320neo is one of several industrial challenges as Airbus tries to accelerate output of new jetliners, fix glitches on its A400M military plane and squeeze extra costs out of the slow-selling A380. The company had previously announced a cut from 15 this year to 12 in 2018. Airbus has demurred and it is not clear any longer that Emirates could make good on its promise.

Airbus's shares fell as much as 4.6 percent as invested contrasted its fortunes with those of USA arch-rival Boeing (NYSE: BA - news), whose stock hit a record high on Wednesday after its quarterly profit and cashflow beat estimates.



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