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15-Feb-2019 11:24 AM

Airbus: A380 programme cut hit EBIT by EUR463m in 2018

Airbus reported (14-Feb-2019) the following highlights for its commercial aircraft families in 2018:

  • A220: Focus for the programme remains on "commercial momentum, the production ramp-up and cost reduction";
  • A320neo: 2018 deliveries increased to 386 aircraft (2017: 181 aircraft) and represented over 60% of overall A320 family deliveries during 2018. The first A321LR was delivered in 4Q2018. Deliveries of the Airbus Cabin Flex version of the A321 are expected to increase in 2019 although the ramp up will "remain challenging". Further upgrades of the Pratt & Whitney GTF engine for the A320neo are due to arrive in 2019. Airbus continues to monitor in-service engine performance. The A320 programme is on track to reach the monthly targeted production rate of 60 aircraft by mid 2019 with 63 per month targeted in 2021;
  • A330neo: The first A330-900s were delivered in 2018 and the A330-800 conducted its maiden flight in 4Q2018. A330neo deliveries are due to ramp up in 2019. Airbus is working closely with Rolls-Royce to "deliver on customer commitments";
  • A380: Following a review of its operations, Emirates is reducing its A380 orderbook by 39 aircraft with 14 A380s remaining in the backlog. As a consequence, and given the lack of order backlog with other airlines, deliveries of the A380 will cease in 2021. The recognition of the onerous contract provision as well as other specific provisions and the remeasurement of the liabilities have led to a negative impact on EBIT of EUR463 million and a positive impact on the other financial result of EUR177 million;
  • A350: Deliveries increased compared to 2017 and included 14 A350-1000s. The programme reached a production rate of 10 aircraft per month in 4Q2018. The backlog supports this rate going forward, including the latest commercial discussions with Etihad Airways to reduce its order by 42 A350-900s, leaving 20 A350-1000s for Etihad in the backlog. Airbus will continue to improve the A350 programme's performance to reach break even in 2019 and improve margins beyond this. [more - original PR]

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