Airbus scraps A380 superjumbo jet as sales slump

European aircraft manufacturer Airbus has pulled the plug on its struggling A380 superjumbo, which entered service just 12 years ago.

Airbus said last deliveries of the world’s largest passenger aircraft, which cost about $25bn (£19.4bn) to develop, would be made in 2021.

The decision comes after Emirates, the largest A380 customer, cut its order.

The A380 faced fierce competition from smaller, more efficient aircraft and has never made a profit.

The order cut meant keeping production going was not viable, said Airbus chief executive Tom Enders, who is due to step down in April.

There was “no basis to sustain production, despite all our sales efforts with other airlines in recent years” he said.

Airbus has taken a €463m charge for shutdown costs, but it is expected that the repayment of government loans could be waived to help cushion the blow.

The aerospace giant said the financial impact of the decision was “largely embedded” in the firm’s 2018 results, which showed a net profit for 2018 of €3bn (£2.6bn) up nearly 30% from the previous year.

Airbus said it would deliver between 880 and 890 new commercial aircraft this year.