Airbus profit dives on problems with A400M military jet

The group's defence and space division may only account for 18% of Airbus revenues, but it was largely responsible for a slump in net income from €2.7 billion in 2015 to €1 billion past year.

Airbus announced Wednesday its net earnings dropped by 63 percent to 995 million euros (1.05 billion) in 2016.

Surprise new costs for the long-troubled Airbus A400M military jet sent the European planemaker's profits plunging previous year despite a rise in commercial aircraft deliveries, Airbus reported Wednesday Feb. 22, 2017.

"We have delivered on the commitments that we gave a year ago and achieved our guidance and objectives, with one exception, the A400M, where we had to take another significant charge totalling 2.2 billion euros in 2016", said chief executive Tom Enders.

EPI is owned by France's Safran (SAF.PA), Britain's Rolls-Royce (RR.L), Germany's MTU Aero Engines (MTXGn.DE) and Industria de Turbo Propulsores (ITP) of Spain.

A spokesman for OCCAR had said on Wednesday the agency was in regular and ongoing dialogue with Airbus, but declined comment on the company's request for new measures.

Airbus delivered more commercial aircraft than ever before in 2016, but results were overshadowed by persistent problems with the A400M military airlifter.

Shares in Airbus were down 1.3 percent in late-afternoon business on the Paris stock exchange.

Airbus still forecasts high demand for its popular single-aisle A320 range jets, but are scaling back production of superjumbo A380s amid lower demand than initially expected.

"But it does not destroy, so to say, the underlying story of the improvement potential that we have ahead of us in the coming years and that goes particularly for earnings and for free cash flow", he added.

He also played down concerns about possible US protectionism under President Donald Trump.

Commercial aircraft provided a 20 percent jump in revenue in the fourth quarter to €17.73 billion as a backlog of aircraft deliveries was partly cleared.