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Last Updated: Wednesday, 27 July 2005, 11:59 GMT 12:59 UK
Airbus sales double EADS profits
Airbus A380 on its test flight
The A380 superjumbo has raised Airbus' profile
EADS, the majority-owner of Airbus, has seen first-half profits more than double to 816m euros (�564m; $979m) thanks to increased plane deliveries.

Airbus, which is 80% owned by EADS and 20% owned by BAE Systems, saw sales rise 12% to 11.26bn euros.

Plane deliveries for the six months reached 189, up from 161 in the year-ago period, with EADS forecasting 360 deliveries for the whole of 2005.

EADS said it expected a "strong" performance for the full year.

"EADS is set to deliver strong group-wide performance for the full year," said co-chief executives Noel Forgeard and Tom Enders in a joint statement.

Meanwhile, the company's helicopter division Eurocopter recorded a 42% increase in operating profits.

Orders take-off

Airbus announced a strong batch of orders at the Paris Air Show in June, although sales were tilted towards single-aisle aircraft rather than wide-body planes which are more lucrative.

In Europe the trend is good, and it is excellent in the Middle East. It is even better in Asia-Pacific, with its huge long-term traffic growth potential
EADS spokesman

This, Airbus said, was due to the budget constraints of low-cost airlines.

Production of the smaller jets will increase to 30 a month next year, up from 26 currently.

Meanwhile, EADS said higher research & development costs for the cargo version of its A380 superjumbo would weigh on the second half of the year.

"The commercial aircraft market continues to improve," EADS said. "In Europe the trend is good, and it is excellent in the Middle East. It is even better in Asia-Pacific, with its huge long-term traffic growth potential."

Boeing battle

Airbus is currently embroiled in a World Trade Organisation dispute with US rival Boeing.

The US has accused Airbus of receiving illegal state aid. The European Union has filed a counter complaint against Boeing, arguing that tax breaks and grants received by the firm are "prohibited and actionable".

Boeing has long been the dominant supplier of commercial aircraft and the leading export company in the US, but in recent years its dominance has been challenged by Airbus.

The current escalation of problems seems to have been fuelled by Airbus' growing competitiveness and its ambitions for the A380.

At the Paris Air Show, Airbus announced that it had overtaken Boeing in terms of new orders, as it unveiled its Airbus 380 to the public for the first time.





SEE ALSO:
Lockheed boosted by missile sales
26 Jul 05 |  Business
WTO probes EU-US air trade battle
20 Jul 05 |  Business
EADS finally names its new bosses
26 Jun 05 |  Business
Airbus 'close' to naming new boss
27 May 05 |  Business
Franco-German dispute hits Airbus
12 May 05 |  Business
Airbus sales help EADS fly higher
09 Mar 05 |  Business


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