Airbus shares fall as a major Iran order is now in jeopardy; CFO to leave in 2019

Airbus shares fall as Iran's 100-plane order is now in jeopardy and following news the planemaker's CFO will step down in 2019.

Airbus shares fall as a major Iran order is now in jeopardy; CFO to leave in 2019

Airbus shares are trading lower Monday, amid news a major Airbus order from Iran could now be in jeopardy as US President Trump seeks to re-impose trade sanctions on Iran. The European plane-maker also announced that its CFO will part ways with the firm in 2019.

By around midday, Airbus shares were 2.45% lower at €97.01. The stock has been in broadly positive territory for the past four weeks.

Airbus order worries

After securing a 100 plane order with Iran, there are now fears the agreement won’t be completed as Tehran is facing trade sanctions from the US.

While the deal was made in December 2016 and is worth $18-20 billion at list prices, only three planes have been delivered to the country to-date.

According to a Reuters report, Iran is expecting to hear from Airbus soon about the future of the deal.

And, while Airbus is showing increased interest in the service and repairs sector of the air industry, the loss of such a significant deal would be a blow to the plane maker.

Airbus CFO to step down

In separate news, Airbus Chief Financial Officer, Harald Wilhelm, is set to step down from his role with Airbus in 2019, alongside CEO Tom Enders’ planned departure from the business.

Wilhelm has been with Airbus for 27 years in a variety of roles, including as CFO for six years and had been considered by some as a contender to takeover from exiting CEO Enders.

“After 18 years at the Airbus finance function, next year will be the right time for me to move on,” Wilhelm said in a statement. “Until then, I remain committed to the performance of the company and I will work with the management to ensure a smooth transition to the next Airbus CFO.”

The Airbus board thanked Wilhelm for his “strong contribution” to the business, adding: “We will now start the search for a successor to the CFO and announcement will be made in due time.”

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