Airbus owner EADS delays new aircraft by six months

City A.M. Reporter
AIRBUS parent EADS pushed back its A350 carbon-fibre jetliner by six months with a €200m (£170m) charge as it seeks to avoid errors like those that nearly derailed Europe's A380 superjumbo.

The delay trimmed third-quarter profits that nonetheless beat expectations as Airbus stabilised costs on the troublesome superjumbo project. And EADS shares got a boost as Europe’s largest aerospace group raised its outlook for the year.

Despite storm waves in Western economies, Airbus and Boeing (BA.N), who dominate the $70 billion aircraft market, are boosting output to meet demand from Asia and the Middle East.

EADS operating profit fell 15 per cent to €322m in the third quarter as revenues fell four per cent to €10.75bn. Net income rose sharply to €312m.

The Franco-German-led group said it expected strength in the commercial market to boost 2011 operating profit to €1.45bn rather than staying flat at €1.3bn.

Aircraft sales remain buoyant despite fears that the economy will dampen passenger travel and a downturn hitting cargo.