Airbus reported a 15 per cent gain in second-quarter profit on higher deliveries of civil airliners including its workhorse A320 single-aisle model.
Earnings before interest, tax and one-time items rose to €1.23 billion from €1.07 billion, beating analyst estimates for 1.07 billion euros.
Airbus took a charge of €290 million for its A400M military transport plane after an aircraft crashed on a test flight in Spain in May.
Sales rose 16 per cent to €16.8 billion, and free cash flow in the first half was €549 million.
The European aerospace company, which draws two thirds of sales from Airbus Commercial, has benefited from demand for new, more-fuel efficient jets as airlines seek to protect themselves from fuel-cost volatility.
Airbus said it still wants to break even on production of its A380 by the end of the year, and that it also targets first delivery of its upgraded A320neos by then.
“It was an excellent quarter, not just for Airbus Commercial but for all the divisions,” said Yan Derocles, an analyst at Oddo Securities in Paris.
“The free cash flow was surprisingly positive, showing they’re doing a better job of executing on programs.”
Airbus rose as much as €2.69 , or 4.3 per cent, to €65.1 in Paris.
The stock has gained 57 per cent in value this year, more than Boeing, which is up 10 percent in 2015.
The Airbus A350 wide-body airliner began deliveries to customers in December 2014 and is slated to get ramped up to 10 planes a month by 2018.
The A320neo is a new-engine variant of its existing single-aisle plane that has won 58 per cent market share against Boeing’s new-engine 737 variant, the 737 Max.
"We are focused on operational priorities, including A350 and A400m ramp-up, cost control and deliveries plus the A320neo transition, as we strive to further enhance profits and cash," chief executive oficer Tom Enders said in a statement today.
Besides the €290 million provision for the A400m, Airbus booked a €748 million gain on the sale of share in Dassault Aviation, a €33 million gain related to its defense and space portfolio, and a €145 million charge related to pre-delivery payment on planes.
Bloomberg