Story ID: GPa380results11142014
Airbus A380 To Reach Break-Even in 2015
By: Gregory Polek
Caption: Increased superjumbo deliveries in third quarter contributes to net income decline
Word Count: 198
Airbus expects its loss-making A380 program to reach break-even status by the end of 2015, helping to offset continued cost increases associated with increasing A350 production support. In its just-released nine-month earnings report, Airbus said its net income slumped in the third quarter from €445 million to €264 million in the period from July to September. It delivered nine A380s in the quarter, compared with four during the third quarter of 2013.   
During the nine-month period ending September 30, Commercial Aircraft revenues rose 5.5 percent, reflecting the delivery mix including 21 A380s compared with 14 in the first nine months of 2013. It delivered 443 aircraft in total, compared with 445 during the same period a year earlier.
In its outlook for the rest of the year and 2015, the company said Airbus Group earnings performance will depend on its ability to limit “one-off” charges. It added that it expects to limit the one-offs to potential charges on the A350 program and foreign exchange effects linked to the pre-delivery payment mismatch and balance sheet revaluation. “The A350 XWB program remains challenging,” it said. “Any change to the schedule and cost assumptions could lead to an increasingly higher impact on provisions.”