Earnings

Airbus CEO: Oil price won’t hurt us

‘Confident’ we can get more A380 orders: Airbus
VIDEO2:4602:46
‘Confident’ we can get more A380 orders: Airbus

Airbus isn't expecting the low oil price to hurt its order book, the European aerospace giant's chief executive told CNBC.

Airbus Group posted 2015 profit in line with forecasts on Wednesday and announced plans to reverse part of a planned production cut of A330 aircraft due to stronger-than-expected demand.

Speaking after the results Tom Enders, Airbus Group CEO, told CNBC that he didn't view lower oil prices as a negative for efficient engine demand.

"Keep in mind the benefit for the airline industry. Now they are really profitable. IATA predicts more than 30 billion dollar profits for the industry next year.

"A healthy airline industry is a good customer for us to have," said Enders on Wednesday.

The chief executive said orders in the helicopter unit had stagnated due to lower energy prices but he didn't expect cancellations.

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Airbus is to increase production of its new wide-body A350 aircraft from 14 in 2015 to more than 50 new planes this year.

Enders added that the firm had been cautious on the A350 because it was new to market, but he was optimistic the target could be achieved.

"There is always risk. But we are pretty confident that we have all the levels in place to manage that ramp up," said the Airbus CEO.

Airbus has also committed to producing seven A330 aircraft a month from 2017. A year ago, it announced plans to cut output of the wide-body jet to six a month from the first quarter of 2016.

And when revealing earnings, Airbus said its A380 superjumbo had broken even for the first time.

Enders added the firm had been rewarded for its patience after 15 years of investment.

"We are fairly confident, particularly with the oil and kerosene price, that this aircraft is even more attractive to customers than it has been in the past. I think the A380 will have a great future," he said.

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