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LONDON—European plane maker Airbus SE EADSY -3.45% again cut production plans for its A380 superjumbo, bringing nearer to an end the era of the big, four-engine long-haul jets closely associated with the rise of global jet-setting.

Boeing Co. pioneered the age with the introduction of the iconic 747 jumbo jet, which entered service in 1970. But the latest model, the 747-8, has sold poorly. The Chicago-based plane maker has cut production plans and said it could cease building the humped-back jet.

Airbus said it would build only eight of its double-decker A380 a year from 2019. It had already cut production plans to 12 planes starting next year. Production of the aircraft, which have a list price of $436.9 million each, peaked at 30 aircraft in 2014. Airbus plans to build half that number this year.

“The situation is certainly not comfortable,” Airbus Chief Executive Tom Enders said, adding that there were sales prospects, but “not many.”

Singapore Airlines , the first operator of the plane, has said it wouldn’t renew the lease of its first A380s and planned to retire some starting next year. Other airlines, including Air France-KLM SA and Deutsche Lufthansa AG have reduced orders.

Airlines have shied away from the big, expensive planes, worried about filling all the seats. They have instead flocked to more efficient, twin-engine long-range jets such as Airbus’s A350 and Boeing’s 787 Dreamliner and 777. Even demand for those big planes has softened in recent months.

Airbus now loses money on every A380 built, though Mr. Enders said cost-cutting efforts mean the impact on earnings is marginal.

The plane maker has sold 317 A380s with Emirates Airline alone ordering 142 of them. The future of some A380 deals in the backlog are uncertain.

The company is also contending with supplier issues that are hobbling deliveries of some of its more popular planes. Delivering new planes smoothly underpins its promise to investors that earnings and cash flow will improve toward the end of the decade.

Lower deliveries of those planes, particularly the A320neo single-aisle jetliner that has a record backlog of orders and the A350 long-range jet, dragged on the company’s second-quarter earnings Thursday. Airbus reported a 34% fall in net income to €895 million ($1.1 billion). The company also suffered about €2 billion in cash outflow in the first six months of 2017.

Airbus did, however, stick to its full-year guidance, including delivering about 720 jetliners. That would include close to about 200 A320neo models, which Mr. Enders said was contingent on engines being available. Airbus said meeting its targets was now “more challenging.”


The European aircraft maker couldn’t match Boeing Co, which reported strong second-quarter results Wednesday, including $4.5 billion in free cash flow, propelled its stock up nearly 10% on the day to close at a record high.

Mr. Enders expressed frustration with continued problems Pratt & Whitney, a unit United Technologies Corp. , was having with the engines it makes for the A320neo.

The engine maker delivered to Airbus far fewer engines than it should have in the first six months and reliability problems haven’t been fixed, the Airbus CEO said. “They certainly need to work hard and harder to fix the outstanding issues,” he said, adding it should be a “winning engine.”

United Technologies Chief Financial Officer Akhil Johri this week said supply chain issues had been addressed and reliability issues would be completely fixed by year-end. The company stuck to its commitment to ship 350 to 500 of the engine this year.

Despite the production headaches, Airbus is pressing forward with boosting output of A320 planes to 60 a month in 2019. With a backlog of more than 5,500 single-aisle planes, Airbus is sold out through 2022, Mr. Enders said.

The large cash outflow in the first six months also was caused by a decision from Qatar Airways to cancel an order for four A350 long-range jets that are already built. Mr. Enders said the plane maker remained in talks with the airline about the planes.

Airbus will be lucky if the A380 doesn't bankrupt the company.

I'm surprised it hasn't already.

First, Boeing and Airbus are both TBTF and the A320 is doing great, and the 350 is doing fine.

The idea of Boeing being "Chicago-based" just gives me a queasy feeling in my stomach

Just ain't right.

Which is sad because the A380, especially Emirates' configuration, is such a great aircraft to ride in.

My wife is about to hit 150,000 miles this year with Emirates (mostly in business class).  She likes the A380 a lot.

I just wish Boeing would come to the realization that their defense side is weighing down Big-Boeing Commercial and divest it, allowing it to go be a separate entity.  Perhaps that entity can be called something starting with "McD".  Whatever this new company is, I wish they would make conforming products and send every Big-Boeing thinker to Seattle.

Big Jumbos are gonna die.  The future of big planes is long twin engine jobs like 777X and the A350.

Profitability is not a requirement, bankruptcy is not a concern.

Airbus has never been a viable business nor was it ever intend to be. Airbus is a Euro jobs program.

The only "odd" thing about business (and I assume much of economy as well):  when you look out the window, there's nothing but wing; fore, aft, up, down...wing.

The Boeing 767 opening up long overwater flights was the end of the 3 and 4 engine jumbo.  The 3 and 4 engine aircraft were the only things "safe" enough to fly those legs until the 767 and the ETOPS concept proved the reliability of twin engine airliners.  It is just cheaper to make 2 engines spin than 4...

The next step will be something more efficient than the aircraft we have flying today...

Great video on the topic.

Well when you design and build a plane that goes against what most passengers want. What do you expect to happen.

The fact that Airbus is first and foremost a European jobs program is exactly right.

LOL ... the way the 1996 merger turned out, im sure Boeing would like to divest itself of McD.

Can you explain further?

And despite the fact they've built some pigs, they've also built some good aircraft, like the 320.

It was interesting how quickly in relative terms they invested in Mobile.

This thread needs more examples of silly Airbus monstrosities

And yet the 330 and 340 sharing the same wing makes the 330 the perfect fit for a tanker.  Common type rating from A320 to A380 is a neat trick, too.

I don't think the 320 and 330 share a type.

You're right, something I had heard once but not independently verified.  330/340/350 is common but 320 to 330 or 380 requires cross crew qualification.  The CCQ courses are quite abbreviated though, 3 to 13 days.

If I think I'm reading you correctly, my understanding is that the CCQ would be within the type ratings, known as differences training for the 318/319/320/321 off the A320 type, or the 330/340/350 off the A330 type. I think the A380 remains a standalone type rating. The A300 has two FAA type ratings, with the A300 type for the A300B4 and the A310 Type covering the A310 and A300B6.

ETOPS = Engines turning or passengers swimming

I guess Singapore just parked their oldest 380.

I saw that. I wonder how many will turn into hotels somewhere...

Not a bad idea. Or aerial firefighters.

I guess Delta just got their first A350.

ETOPS mega twins are going to rule the sky for anything except huge cargo.

The 777X will kill both the 747 and 380.

Been that way for awhile. Fedex figured out the 380 wasn't going to be a good cargo aircraft...I've seen the cool 380 model in Fedex colors. It hangs next to a TWA Concorde model

Even for cargo, the 747 has been viable because the feedstock for conversion is cheap, and the aircraft has a great weight over time lift curve. Who knows how that will play if Boeing has to keep the 777 line open on a price point level.