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Airbus core earnings down 5%, confirms targets

Airbus Group posted a narrower-than-expected 5 percent drop in core earnings on Tuesday, despite lower aircraft deliveries and higher research and development spending, and reaffirmed its financial goals for the year.

The world's second-largest aerospace group after Boeing said its latest jetliner, the A350, was "progressing towards certification" in time for first delivery by the end of the year as planned.

Read MoreChina in talks with Airbus on possible $20 billion aircraft deal

An Airbus A320 - similar to the aircraft used by Air Algerie.
Source: Airbus
An Airbus A320 - similar to the aircraft used by Air Algerie.

First-quarter operating income before one-off items fell 4.6 percent to 700 million euros ($963 million) as revenue rose 5 percent to 12.6 billion.

Airbus Group reported another hefty outflow of cash in the first quarter as it boosts liquidity for major projects. Free cashflow before acquisitions came in at a negative figure of 2 billion euros, though this was less than the unusually weak level of 3.2 billion seen a year earlier.

Analysts were on average expecting the group's underlying quarterly operating income to fall 13.1 percent to 644 million euros on broadly flat revenue of 12.4 billion, according to a poll carried out for Reuters.

Read MoreAirbus CEO defends outlook, ramps up A320 production

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