Airbus is seeking to reassure investors that its decision to cut production of the world’s biggest passenger jet, the A380, would not badly hurt the group.

Doubts over demand for the double-decker A380 and more cost overruns on the A400M military airlifter overshadowed fresh jet orders as the two planes flew under grey skies at the Farnborough Airshow.

Airbus Group CEO Tom Enders said the company remained optimistic about long-term prospects for the 544-seat A380, and hoped to return to higher levels of output in the years ahead.

Enders was speaking a day after Airbus cut its target for A380 deliveries to 12 a year from 2018, from 27 in 2015 and well below its current breakeven point, due to weak demand. The reduction deals a blow to one of Europe’s biggest and most expensive industrial projects. Reuters reported last month that doubts were growing over an order for 12 of the jets from Iran.

Industry sources say the project is effectively in a strategic holding pattern while Airbus takes advantage of low oil prices to defer decisions on whether to invest more or allow it to fade away.

Airbus and US rival Boeing have enjoyed years of booming sales.

But risks to the global economy have caused sales to diminish and analysts are worried some of the industry’s record order backlog could be deferred or cancelled.

Airbus said it did not expect a wave of order postponements.

So far at the Farnborough show, the industry’s showcase event, Airbus and Boeing have announced combined business worth more than $60 billion.

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