British plane parts supplier Meggitt said civil aviation markets were looking more stable while military markets remained healthy, as it looked forward to an air traffic recovery in 2010.
"Production deliveries for large jets have been sustained at higher levels than many had anticipated, a trend which now looks set to continue in 2010," Meggitt said in a statement on Friday.
Trading was in line with expectations and better than expected progress in its cost-cutting program had helped shield its margins from the effects of the downturn in civil aviation, it said.
Meggitt, which supplies products such as flight displays and wheels to Boeing and Airbus, aims to cut costs by GBP25 million pounds (USD$41.1 million) this year and said it had cut 12 percent of its staff since July 2008.
It added it remained within the lending conditions of its bank facilities and that net debt had fallen.
