Airbus, the struggling subsidiary of the European Aeronautic, Defence and Space Company (EADS), is expected to post losses in March.
The aviation company, which had a €22.3 billion (£14.6 billion) turnover in 2005, is expected to announce losses in 2006 after a fall in sales.
Although Airbus received a record-breaking 1,111 orders in 2005, 2006 saw just over 600 new orders.
A statement from EADS attributes "certain one-time charges in relation to settlements with customers and impairment of assets" to the probable losses of the Airbus division.
The company also said that additional charges not originally envisaged for the troubled A380 could also apply, denting Airbus profits further. The four-engine double-decker aircraft has been plagued with delivery delays, leading to calls for compensation from some of Airbus' customers.
However, EADS has stated that although losses from Airbus will have an impact, there are estimated positive contributions from the other divisions of EADS which "should roughly balance out the estimated negative impact of Airbus for 2006."
The EADS group also contains the world's largest helicopter supplier, Eurocopter, and the joint venture MBDA, the leading international missile producer in the global market.
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