Airbus Q1 profit beats estimates but challenges remain

[PARIS] Lower costs linked to production of its A380 superjumbo jet and favourable exchange rates helped lift Airbus Group, the European aerospace giant, to a better-than-expected profit in the first quarter, the company said on Tuesday.

But the group warned that challenges remained as its latest wide-body plane, the A350-XWB, makes its way through final development and testing before entering into service this year.

Airbus said group net profit for the three months to March 31 nearly doubled to 439 million euros (S$753 million), from 227 million euros a year earlier, when the company faced significant costs to modify a component of the A380's wings. On an underlying basis, before interest, taxes and one-time expenses, Airbus said earnings declined 4.6 per cent, to 700 million euros, on sales of 12.6 billion euros.