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Profit warning by Airbus parent
A380 delays and production problems led to an operating loss for Airbus in 2006, its parent EADS has warned.
EADS shares fell 2.8% in Paris yesterday following the announcement, which pre-empted an Airbus press conference.
It said Airbus would be hit by charges relating to settlements with customers, impairment of assets and its Power8 cost-cutting programme.
EADS announced a €1 billion A380 charge in November, but said there could also be additional charges that were “not originally envisaged”.
Airbus secured fewer orders for new planes last year than its rival Boeing for the first time since 2000.
It won 824 new orders last year, down from 1,111 in 2005, and below Boeing’s 1,050.
The number of orders for A380s dropped from 20 to 17. EADS reportedly said “additional A380 charges not originally envisaged” were one factor likely to push Airbus into the red for the past financial year.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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