Airbus sparks a relief rally as first quarter profit beats expectations
AIRBUS Group posted better than expected first-quarter earnings yesterday, sparking a relief rally in its shares as it dodged the impact of higher costs for its new A350 jet, which remains on track for a late-2014 debut.
Shares in the world’s second-largest aerospace group after Boeing rose by over six per cent to €52.54, their highest in more than a month, after it issued an upbeat report on A350 testing and exceeded profit forecasts by about 10 per cent.
First-quarter operating income before one-off items fell by a smaller than expected 4.6 per cent to €700m (£570.57m) as revenue rose five per cent to €12.6bn, and analysts said it had improved execution on key programmes.
Confirming recent comments by Europe’s aviation regulator, Airbus Group said its latest jetliner, the A350, was “progressing towards certification” in the third quarter in time for first delivery by the end of the year to Qatar Airways. “The A350 is in a critical phase, and challenges and risks remain,” finance director Harald Wilhelm said.