PARIS: High costs for new satellites have prevented the world’s largest aircraft manufacturer Airbus from achieving a stronger increase in profits in the third quarter, reported dpa news.
While the company’s passenger jet business grew strongly, the defence and aerospace division even sank into the red due to the extra costs, the company announced in Toulouse on Wednesday evening.
Nevertheless, chief executive Guillaume Faury believes the company is on course this year to achieve an operating profit adjusted for special items (adjusted EBIT) of around €6 billion (US$6.4 billion) and to stick to plans to deliver 720 commercial aircraft.
In the third quarter, Airbus increased its adjusted operating profit by 21 per cent year-on-year to just over €1 billion, but fell short of analysts’ expectations because the increased costs for satellite development burdened the result by around €300 million.
At €806 million, the Group’s bottom line was also 21 per cent up on the previous year.
Airbus management is responding to the growing demand for long-haul aircraft.
The company expects the production to reach 10 A350 wide-body jets a month in 2026. Previously, Airbus management had set a target of 9 aircraft a month by the end of 2025.
Production of the sought-after medium-haul jets from the A320neo family is to continue to grow to 75 aircraft a month by 2026. – Bernama, dpa