Airbus second-quarter profit rise beats forecasts, delivery challenges ahead

  • 31/07/2019
Airbus second-quarter profit rise beats forecasts, delivery challenges ahead

Airbus on Wednesday published a stronger than anticipated main income in the second quarter, thanks to the transition to new efficient aircraft with one pass, and kept its earning forecast for the year, at the same time warning about delivery problems in the second half.

The biggest aerospace group in Europe reported that the adjusted operating profit for the second quarter increased by 72% to 1.98 billion euros ($ 2.2 billion), which is due to over double the growth of the main segment of commercial Airbus aircraft. Incomes increased 23% to 18.32 billion euros.

Consensus made by the firm prove that analysts on average predicted adjusted quarterly operating revenue of 1.774 billion euros with incomes of 17.824 billion, according to a consensus made by the firm.

Airbus attempts to handle manufacturing postpones at the new extended factory in Hamburg, Germany, which is accountable for the improved cockpit for the sought-after model, the A321neo, the largest form of the best-selling single-pass aircraft series.

“The second half of the year in terms of deliveries and in particular free cash flow continues to be challenging,” Chief Executive Guillaume Faury said in a statement.

However, Airbus will become the world's largest aircraft manufacturer in 2019, as the competing US Boeing faced a longer-than-anticipated grounding of its 737 MAX, ordered by global regulators in March after two deadly accidents.

In the second quarter, Airbus took 75 million euros on new costs associated with the cost of winding down its Super3umbo A380 program after deciding to cut production due to weak requirement.

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