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Published on : Jul 31, 2014

Leading aircraft manufacturer Airbus on Wednesday said that the recent wave of order cancellations for its commercial jetliners do not mean that the market has declined. The market is still strong and single-aisle jets deals are likely to return later.

A total of 225 Airbus cancellations were reported since the beginning of this year. Of these, Dubai’s Emirates Airlines alone cancelled an order of 70 A350 wide-bodied aircraft last month. After the transition of the A320 single-aisle jet to the A320neo, orders for the former were cancelled. Nearly 65 orders were called off for this reason. The sale of six A380 superjumbos to Japan’s Skymark Airlines was also cancelled. Other A380 customers such as Virgin Atlantic Airways have also decided to discontinue orders.

In Q2 of this year, Airbus earned USD 933.3 million in net profits, reporting a 31% rise. Sales too went up 7% to USD 19.42 billion in the same quarter. The European plane maker’s shares recovered by 4.5% on Wednesday after slipping more than 8% two weeks ago. Deliveries too rose to 162 in the second quarter this year, from last year’s 151. Airbus, for the first half of the year, recorded a 10% rise in core operating profit and a 6% increase in revenue generated by the sales of airplanes and helicopters.

Airbus has expressed its interest in selling its 46% shares of Dassault Aviation, maker of Falcon business jets and the Rafale fighter jet.

The world’s second-largest plane manufacturer will be introducing an upgraded version of the A330 widebody this month and has already received USD 75.3 billion in deals.