Airbus propels EADS to a record £712m

EUROPEAN aerospace champion EADS today unveiled a 60% surge in net income to a record €1.03bn(£712.6m), powered by soaring sales and profits at airliner subsidiary Airbus.

Airbus, 20% owned by BAE Systems, delivered 320 airliners in 2004 against arch-rival Boeing's 285, winning 57% of the world market and generating earnings before interest, taxation and depreciation of €1.92bn.

With a blossoming order book and its A380 superjumbo set for its first flight soon, EADS said Airbus is on course to deliver a new record of between 350 and 360 planes this year.

The record profit was unveiled as EADS replaced co-chief executives Rainer Hertrich and Philippe Camus with former Airbus pilot Noel Forgeard and former paratrooper Thomas Enders. Sales were €31.8bn in 2004 as output of the new Eurofighter Typhoon combat plane increased. EADS said sales should reach €33bn this year.

Progress is expected to be driven by a 10% rise in defence sales. The space division, part of the consortium negotiating a contract worth €18bn to equip the RAF with tanker planes, has achieved a long-awaited turnaround. It is also pitching against Boeing for a refuelling deal with the US.