The firm, formed two years ago from the merger of the main French, German and Spanish aerospace companies, said underlying pre-tax profit rose a better-than-expected 21% to 1.7bn euros (�1.1bn; $1.5bn) last year.

The vast majority of that increase was due to gains from foreign exchange rates, and the consolidation of its Airbus stake in its overall accounts.

And while the firm said that aircraft demand last year had been strong, sales and profits would suffer this year as the effects of the 11 September attacks filter through into its order books.

Aircraft take off

Airbus was the firm's main source of growth, helping to push net profit up to 1.4bn euros, compared with a 909m euro net loss in 2000, when the firm was hit by a huge charge relating to hedging transactions.