Airbus Profits Down As Problems Mount on A400M and Airliners | Aviation International News

Airbus Profits Down As Problems Mount on A400M and Airliners

Airbus admitted that problems with the A400M engine, and production issues with the A350 and A320neo airliners could impact 2016 financial performance.

Manufacturing faults in the engine propeller gearbox of the A400M's TP400-D6 engines are one of several issues facing Airbus as it seeks to contain the potential impact of production problems on its 2016 financial results. [Photo: Airbus]

By Charles Alcock • Managing Editor

April 28, 2016

The Airbus Group today reported a 50 percent dip in net profits for the first quarter of 2016 with net income of €399 million ($444 million), compared with €792 ($895 million). While the decline in net income can partly be explained by one-off items, the European company warned of further significant cost issues on both the civil and military sides of its business that could negatively impact year-end financial results for 2016. Specifically, Airbus Group CEO Thomas Enders flagged up “a serious challenge” with production and delivery of its new A400M military transport, as well as supply chain bottlenecks with the A350XWB widebody airliner and ongoing complications with Pratt & Whitney’s PW1100G-JM engines for the new A320neo narrowbody.

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