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Airbus confirms A380 production cut as third-quarter forecasts tumble

An Airbus A380 aircraft performs during a flying display at the Farnborough Airshow, south west of London, on July 14, 2016.
Adrian Dennis | AFP | Getty Images
An Airbus A380 aircraft performs during a flying display at the Farnborough Airshow, south west of London, on July 14, 2016.

French planemaker Airbus has confirmed its intention of cutting the assembly rate of its A380 superjumbo aircrafts to one per month from 2018.

Demand for the A380 has dwindled and in July this year, company CEO Fabric Bregier said the market for A380-sized plans "is very thin" and that finding new buyers is taking longer than expected.

The head of the program, Alain Flourens confirmed the production cut Tuesday and said the move will help "smooth our deliveries pending new orders".

Airbus currently assembles 2.5 A380 aircraft each month, but has seen the likes of Qantas and Air France cancel previously booked orders.

While the A380 has proved popular with travelers, most carriers prefer smaller twin-jet models that are more fuel efficient and can access more airports.

Airbus shares slumped Tuesday after three brokerages issued a forecast that earnings in the third quarter would fall by a minimum 12 percent.

Deutsche Bank, Natixis and JPMorgan all cited higher operational costs as well as a looming slowdown for the airlines sector.