Airbus Group SE for the second time this year is cutting production plans for its flagship A380 superjumbo and now faces the prospect of losing money on the plane again already next year.
The move comes at a time both the European plane maker and its larger rival Boeing Co. are struggling to sell their big four-engine planes. Boeing also has had to cut production plans for its 747-8 owing to slack demand.
Airbus in July said it would build just 12 A380s planes a year starting in 2018, down from the 27 it built last year. It had planned to build around 20 of them next year, reaching break-even on those deliveries.
But Airbus Tuesday said it had to go further. After a three-way agreement involving also Emirates Airline, the biggest buyer of A380s, and engine maker Rolls-Royce Holdings PLC, the plane maker will delay six A380 deliveries planned for next year to 2018 and another six from 2018 to 2019.
Airbus said it would accelerate efforts to minimize the financial hit, though they signaled the program would fall back into the red. “The impact on break-even in 2017 is minimal,” the company said.
The Wall Street Journal