Airbus Announces Results, Lifts A330 Output

Airbus said 2015 profits rose slightly as it announced changes to plans to cut A330 production, easing the transition to newer models.

The European plane maker said it now planned to build seven A330s per month from 2017, partially unwinding recent announced cuts in output to six from 10 a month as it prepares for an A330 upgrade and a new A350 model.

Demand for the current generation of jets such as the 250- to 300-seat A330 faces a broad decline as the new generation of fuel-saving aircraft enters the market.

But Airbus's most profitable wide-body jet has gained some respite due to the drop in oil prices, which have made some airlines pause investment in newer, more efficient models.

The move to reconsider the production decrease came weeks after Iran provisionally agreed to buy 45 A330s as part of a USD$27 billion deal following the lifting of sanctions. Airbus said it would have gone ahead anyway because of other deals.

That should be enough to put a floor under production until the updated A330neo enters service at the end of 2017, chief executive Tom Enders said.

Airbus said plans for a steep increase in A350 output remained challenging, and confirmed delays to the A320neo, whose deliveries will be weighted towards the second half of 2016 following problems with Pratt & Whitney engines.

Qatar Airways' CEO was critical of Pratt at the Singapore Airshow but Enders backed the US company's recently reshuffled management and said "much improved" engines would be delivered from mid-year.

Airbus also indicated lingering risk with the A400M military transporter as it negotiates with European nations over recent delays and shortfalls in capability.

Airbus said 2015 operating earnings before one-off items rose 2 percent to EUR€4.13 billion as revenue gained 6 percent to EUR€64.45 billion.

The group said it expected stable underlying operating profit and cash flow this year.