Airbus shares tumble over 6% after recall of A320 aircraft
Airbus shares dropped more than 6.5% by 13:15 GMT on Monday after the company disclosed a new industrial quality issue affecting some of its A320 family aircraft, prompting an urgent software update.
The aerospace manufacturer revealed last week that it had ordered an immediate precautionary software update for all A320 family jets after discovering that strong solar radiation could corrupt data vital for flight-control systems.
Following further inspections, Airbus said it has identified a substantial number of in-service A320 aircraft that may be at risk. In response, the European Union Aviation Safety Agency (EASA) issued an Emergency Airworthiness Directive for the A320 series.
On Monday, Airbus confirmed that software updates have now been completed on thousands of aircraft since the alert was issued. Despite this progress, the company’s stock fell sharply on the Paris exchange.
Airbus shares reached a record high of €217 ($252.7) in October.
Shares of Thales, the French aerospace and defense company responsible for supplying Airbus with flight-system software, also slipped 3%.
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