Airbus delivered more commercial aircraft than ever before in 2016, but results were overshadowed by persistent problems with the A400M military airlifter. The company — currently in mid-restructuring as it reorganises itself from “Airbus Group” to “Airbus” — says it achieved its overall performance targets but had to take a further charge of €2.2bn on the A400M programme, on top of the €841m booked over the two preceding years.

“De-risking the programme and strengthening programme execution are our top priorities for this aircraft in 2017,” said CEO Tom Enders. In an attempt to limit the financial damage, the company is seeking to renegotiate existing contracts with government customers.

Group revenues increased 3% in 2016, to €67bn, helped by record commercial aircraft deliveries of 688 (+8%). EBIT Adjusted was down 4%, at €3,955m. Net income plunged 63%, to €995m.

Order intake dropped 16%, to €134bn, as net commercial aircraft orders slipped 32%, to 731 aircraft.

The company met its ramp-up target for the A350, with 49 aircraft delivered during 2016, but acknowledged that the situation remains challenging as the ramp-up progresses. The production target is 10 aircraft a month by the end of 2018.

For the year ahead, Airbus expects to deliver more than 700 commercial aircraft, with mid-single-digit percentage growth in EBIT Adjusted, compared to 2016.