Airbus hit by A400M delays

AIRBUS beat expectations with stronger than-expected third-quarter profits but this was overshadowed by further delays to its A400M transport aircraft.

The European aerospace giant, which employs more than 12,000 in the UK, including 6,000 at its wing factory in Broughton, North Wales, and 6,000 at Filton, Bristol, said nine-month operating profits before one-off items rose 12pc to £2.07bn.

Finance director Harald Wilhelm said the commercial aerospace industry continued to weather economic uncertainty as airlines order more efficient new jets, bringing in a slew of deposits that contributed to surprisingly strong cashflow.

He told Reuters: ‘There is a very healthy booking situation and very healthy backlog.’

Airbus reaffirmed its forecasts for the full-year, but warned about the possible impact of new production and delivery delays on Europe’s largest defence project, the A400M. It cost £16bn to develop the cargo and troop carrier for seven European NATO nations but delays and cost overruns prompted a £2.8bn public bailout in 2010.

The A400M has already been on operations with the French air force in Mali, but Airbus said there had been delays in adding advanced features on later aircraft, some of which will have to be retrofitted.

The first A400M for the Royal Air Force is due to be delivered to RAF Brize Norton shortly.

Airbus also said it was on track to deliver the first of its A350 passenger jets in the fourth quarter, a wide-bodied aircraft designed to compete with rival Boeing’s 787 Dreamliner.