BEIJING – Airbus Group NV Chief Executive Tom Enders on Wednesday said a flurry of order cancellations for its commercial jetliners doesn’t herald a market downturn and that many of the deals for single-aisle jets will return at a later date.

Net commercial jet order intake this year already is ahead of planned deliveries with “a lot more orders” to come, Mr. Enders said. “The market is still very strong” with weak spots such as Asia merely regional blips, he said.

Airbus on Tuesday reported a 31% rise in second-quarter net profit to €696 million ($933.3 million) as sales advanced 7% in the quarter to €14.5 billion. The company’s shares rose more than 3.7% in early Paris trading.

Airbus has suffered more than 225 order canceled this year, including a decision by Emirates Airlinenot to acquire 70 A350 long-range jets. That number isn’t alarming, Mr. Enders said, with only the Emirates development truly unforeseen.

Cancellations particularly of the A320 single-aisle jet, the backbone of Airbus production, are driven partly by a transition to a newer model, the A320neo for “new engine options,” Mr. Enders said. Deals with airlines that normally would delay A320 orders are now being canceled because the Toulouse-based plane maker wants to quickly shift to building only the A320neo, which starts being delivered next year.

“We have to cancel these old orders and these are normally transferred into new orders,” Mr. Enders said. More A320 cancellations of this type are likely this year and next, he said. In some cases, the replacement deals are booked at better financial terms, Mr. Enders said.

His comments come just a day after Airbus said it had canceled the sale of six A380 superjumbos to Japan’s Skymark Airlines. 9204.TO -13.60% Two of the planes have already been assembled leaving the manufacturer to seek other buyers at a time it has struggled to win new orders for its flagship plane.

Mr. Enders said not delivering the Skymark planes wouldn’t undermine a long-standing goal for A380 shipments next year to reach break even after years of losses. The deal with the Japanese carrier was canceled before the complex cabin interior was installed which should make re-marketing the plane easier, he said.

Other A380 customers have also indicated they may not want the jet, such as Virgin Atlantic Airways. “We have cases where airlines are in the order backlog but not in the actual production plan,” Mr. Enders said, without naming specific airlines.

Sales campaigns are ongoing to secure more A380 orders, he said, while acknowledging “the very large aircraft category is a weak category.”

Additional jetliner bookings this year will also come from a decision to introduce an upgraded version of the A330 widebody at the Farnborough air show this month, Mr. Enders said. The world’s second-largest plane maker secured $75.3 billion in deals at the event.

The so-called A330neo is due for delivery from late 2017 and promises 14% greater efficiency over the existing model largely by adding new engines from Rolls-Royce Holdings RR.LN +0.38% PLC.

The A330 has been an important contributor to Airbus profit, but the existing version was starting to run short of orders as more fuel-efficient planes such as the Boeing Co. BA -0.60% 787 Dreamliner entered the market. Airbus has won 127 commitments for the A330neo jet and it projects demand to top 1,000 aircraft.

To help boost profit, Airbus has embarked on a wide scale restructuring, including integrating its defense and space units to help lift profitability. Those efforts are progressing well, Mr. Enders said.

As part of its restructuring plan, Airbus said it is studying disposal options for its nonvoting share in Dassault Aviation SA, AM.FR +1.66% the maker of business aircraft and the Rafale combat jet. Airbus has a 46% stake in the company. The French government has the right of first refusal on the disposal of some or all of the stake.

“We want to monetize that participation,” Mr. Enders said. “It is not a question of if it is a question of when,” he said. Airbus has faced investor pressure to shed the stake which Mr. Enders saying the company was “actively engaging” on the issue.

Airbus maintained its full-year guidance of moderate returns on sales growth this year while reaching 7% to 8% returns in 2015, not counting development costs of the A330neo. Those will crimp return on sales next year, the company said when it launched the project.

The world’s second-largest plane maker, like rival Boeing, relies heavily on titanium from Russia to make its jets. Mr. Enders said the company’s relationship for titanium raw material and forgings from VSMPO, the world’s biggest titanium supplier, is stable.

“I do not expect the flow of it will be cut off short of all-out war,” Mr. Enders told analysts on a call as the European Union imposes further sanctions on Russia over the country’s efforts to destabilize Ukraine. Airbus is exploring potential mitigation action to protect against supply disruptions.

Airbus’s newest long-range jetliner, the A350, is in its final test phase before regulators signoff on the design, clearing the way for the first jet to be delivered to lead-operator Qatar Airways Ltd. before year-end. “The A350 program remains challenging,” Airbus said in the statement, though certification for safety authorities remains on track for this quarter.
– WALLSTREET JOURNAL