European plane maker Airbus made a big operating loss last year despite record orders for its aircraft, forcing parent company EADS into the red.
Airbus, struggling with cost overruns on its A380 superjumbo project and delays with its A400M military plane, made an operating loss of €881m, worse than the loss of €572m in 2006. The 2006 results were the first time the company had made a loss in its history.
EADS reported a net loss of €446m for 2007, but the giant aerospace and defence group forecast a return to form this year.
It said sales were expected to rise to 'above €40 billion' against €39.1 billion in 2007.
As well as the operational difficulties with the A380 and A400M, Airbus and EADS struggled with the strong euro in 2007. This made their exports less competitive on international markets and reduced margins.
Nevertheless, Airbus won 1,341 firm orders in 2007, slightly fewer than US rival Boeing, but higher than the European company's previous record set in 2005 of 1,055.
The combined orders of Boeing and Airbus, which dominate the world market for passenger jets, were the highest in the history of the industry in 2007.
