Home Business Airbus shares soar on higher earnings

Airbus shares soar on higher earnings

by InterSpaceReporter

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Some Airbus A320 models have been hit by delivery delays

Core earnings at Airbus, Europe’s largest aerospace company, doubled in the second quarter despite a sputtering start to 2018.

Bottlenecks of undelivered planes began to ease, while costs relating to its newest big jet, the A350, were lower.

After a series of engine manufacturing issues caused delays, chief executive Tom Enders said deliveries had “picked up”, but “challenges remain”.

The results sent Airbus shares to a record high.

The company has faced a backlog of up to 100 A320neo jets parked outside factories without their engines.

Many of the engines, which have been beset by glitches, are made by US-based manufacturer Pratt & Whitney.

Earlier this month, Airbus said the firm was “catching up” and that there would be further improvement in the second half of the year.

Airbus, which is based in the French city of Toulouse, said second quarter adjusted operating earnings doubled to €1.15bn (£1.02bn).

However, net income for the quarter was down 69% to €213m (£189m).

The planemaker also reported orders and commitments for 431 aircraft during July’s Farnborough Airshow, which are yet to be reflected in their earnings figures.

Its shares were up by as much as 5% in morning trading.

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