Airbus profits halved

Paris : European air giant Airbus said yesterday its half-year profits plunged, as the company is hit by delays in the delivery of its A320neo engines, but confirmed its objective to provide 800 aircraft this year despite “risks”. Net income for the period more than halved to 496 million euros ($582m) from 1.09 billion last year including “a negative impact from the foreign exchange revaluation of financial instruments.”

“The first half financials reflect the back-loaded deliveries due to A320neo engine shortages, while on the positive side there was a strong improvement on the A350 programme,” CEO Tom Enders said in a company statement. “A320neo aircraft deliveries picked up during the second quarter but challenges remain to meet our full year targets.”

“Market demand remains strong for the expanded Airbus portfolio that now includes the A220 at the smaller end.” The A320neo is a more fuel-efficient version of the Airbus company’s best-selling airliner, the A320.