Airbus takes €1.3bn charge on A400M troop carrier

The A400M in flight

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Airbus has taken a €1.3bn (£1.2bn) charge on its troubled A400M military transport plane, bringing total charges on the project to more than €8bn.

The A400M has had setbacks over the years, most seriously a crash during a test flight in Spain in 2015 which led to the deaths of the four crew members.

The aerospace group reported better-than-expected 2017 profits of €4.2bn, against €3.9bn in 2016.

Revenues were “stable” at €66.8bn, up from €66.6bn.

In its statement, Airbus said higher aircraft deliveries had been “offset by a reduction in revenues of around €2bn from the perimeter changes”.

Last week, Airbus reached a provisional agreement with seven European NATO buyer countries over further delays in deliveries for the A400M.

Airbus chief executive Tom Enders said: “On A400M, we made progress on the industrial and capabilities front and agreed a re-baselining with government customers which will significantly reduce the remaining programme risks. This is reflected in a substantial one-off charge.”

Shares in the company rose by nearly 8% after the results were published.

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