A350 Increased Sales Boost Airbus Earnings to 1.6%, Equalled A380
Airbus Group SE reports of a jump in profit by 1.6% in 2015 as A350 model aircraft deliveries increased and overrides its A380 superjumbo. Its revenue before tax and interest grew to €4.13 billion from €4.07 billion a year earlier, not including one-time items, as sales boost 6% to €64.5 billion, as mentioned on Wednesday by Airbus. Based on 14 estimates, analyst forecasts the company to have a €4.38 billion of profit.
Airbus gets its revenue which is about two-thirds from its airliner unit that benefits from thousand orders for new fuel-efficient aircraft that are placed before the lately oil price decline. The company delivered the first A350 in 2014 and 14 planes in 2015. This year, another 50 will be manufactured.
According to Airbus CEO Tom Enders, the results are 'solid' and that the France-based Airbus Toulouse, is "focused on program execution and managing the challenges we face with the acceleration of the A350." He added that this 2016, the cash flow as well as the earnings before interest and tax, not including the items should be 'stable', Bloomberg reports.
Airbus' plan is to produce seven A330 widebody jets monthly in the year 2017, slightly winding off perplex cuts in productions from ten to six a month as it gets ready to build the new A350 jetliner and upgrade the A330. However, competitor Boeing said that although with new engines, the upgraded A330neo will be made ancient by its 787 Dreamliner and even Airbus' A350, according to Reuters.
Both Airbus and Boeing have savored long periods of elevated bookings for aircraft order as airlines replace old fleets and get additional planes to deliver growth. Investors are being just being concerned that the growing period is nearing its end of the road. The reason is the fear of reduction in the demand for more efficient and latest models due to lower fuel prices, as reported by MarketWatch.
Last year has been a good year for Airbus Group as the European aircraft maker reports of an increase in sales of 6% after Boeing Co. which is the second largest aircraft maker. Airbus has booked 1,080 commercial planes last year and is hoping to receive more orders prompting them to increase output.