Airbus is in the midst of its largest industrial overhaul since it was founded almost 50 years ago Airbus said it had delivered more of the A320neo jets carrying new engines in the second quarter than the previous A320 version PARIS: Airbus posted higher than expected second-quarter earnings on Thursday and reaffirmed its full-year goals, as bottlenecks of undelivered aircraft began to ease and costs tumbled on the group"s newest big jet, the A350. Its shares rose more than 5 percent to a record high. Airbus is in the midst of its largest industrial overhaul since it was founded almost 50 years ago, replacing or updating its two most profitable product lines while simultaneously speeding up production to meet record air travel demand. While the introduction of the A350 has gone relatively smoothly, showing “strong improvements” in costs as Airbus heads toward a production goal of 10 a month by the end of the year, the smaller A320neo continues to cause headaches. Deliveries of the medium-haul jet, which generates most profit and cash for Europe’s largest aerospace group, have been delayed by gaps in engine supplies. But Airbus reached a turning point in May as the queue of semi-finished planes outside European plants started falling having peaked at 100. For the first time, Airbus said it had delivered more of the A320neo jets carrying new engines in the second quarter than the previous A320 version. But it said risks remained to its “challenging” delivery forecast of 800 in total this year. “It’s going to be a hell of a ride, but the 800 aircraft delivery target is feasible,” CEO Tom Enders said. Airbus delivered 303 aircraft in the first half. The Toulouse-based company said second-quarter adjusted operating earnings doubled to €1.15 billion ($1.35 billion) as revenue rose 8 percent to €14.85 billion. Analysts were on average predicting an adjusted operating profit of €1.01 billion on revenue of €14.55 billion, according to a Reuters survey. Airbus’ results came a day after US rival Boeing posted better-than-expected quarterly profit and revenue, but disclosed $426 million in higher costs on its delayed KC-46 refueling tanker program, sending Boeing shares lower. It’s going to be a hell of a ride but the 800 aircraft delivery target is feasible.