PARIS (AP) -- Airbus parent EADS said Wednesday it returned to profit in the first quarter as the planemaker increased deliveries and cut costs, helping offset the weaker dollar.

European Aeronautic Defence & Space Co. NV reported a net profit in the January to March quarter of 285 million euros ($440 million), compared with a loss of 10 million euros a year earlier when the company booked a heavy upfront charge to pay for a turnaround plan.

The restructuring burden combined with penalties and cost-overruns on new aircraft programs -- compounded by the ever-cheaper dollar -- led EADS to report losses in four of the last six quarters.

The better-than-expected first quarter results came a day after Airbus warned of further delays in the delivery of its A380 superjumbo. Shares climbed 5.9 percent to close at 16.64 euros ($25.80).

"There is a lot to be encouraged by here," said ABN Amro analyst Sandy Morris.

"The credibility of the management team is building steadily."

CEO Louis Gallois told analysts in a conference call that while he is "not content" with the level of profits, "we now have a business which is brisk and solid."

But Gallois remained cautious because of the weak dollar and higher fuel costs, which combined with global economic woes, are hurting the airline industry.

EADS maintained its expectations for earnings this year, but warned of a possible "negative impact" from a weaker dollar.

The dollar's slide against the euro makes it harder for Airbus to compete against Boeing Co. Unlike its U.S. rival, many of Airbus' costs are in euros, though it sells its planes in dollars.

A sizable restructuring is under way at EADS in which 10,000 job cuts are planned by 2010.

Gallois, speaking on a conference call, said additional measures were needed to compensate for unwinding currency hedges that have so far shielded the company from the impact of the weak dollar.

He said Airbus is looking at cutting research budgets and increasing the dollar content of its planes, particularly when it comes to signing contracts for new programs.

The 15-nation currency has hit record highs in recent weeks against the dollar and purchased $1.5422 in morning European trading Wednesday.

"The supply chain really has to move" into the dollar-zone, said Morris.

"It will be expensive and painful to do this but its arguably the only way you can secure the company's long-term future."

A cost-cutting plan was devised after multiple delays to the A380 superjumbo and a redesign of the A350 -- the planned competitor to Boeing's 787 -- wiped billions of euros off EADS' profits.

In the first quarter sales increased 10 percent to 9.9 billion euros ($15.3 billion) from 8.9 billion euros a year earlier.

Earnings before interest, taxes, goodwill impairment and exceptional items -- a measure of profit favored by analysts -- increased almost ninefold to 769 million euros ($1.23 billion) from 88 million euros. That exceeded analysts' expectations of 359 million euros ($555 million), according to a poll by Dow Jones.

EADS predicts 2008 revenues will exceed 40 billion euros ($61.9 billion), with an EBIT of 1.8 billion euros ($2.8 billion).

The forecast is based on Airbus delivering about 470 airplanes in the year and taking over 700 orders. It does not take into account the additional delays to the A380 superjumbo announced Tuesday, which may result in financial penalties from airlines.

Airbus, which accounts for two-thirds of EADS' sales, reported earnings before interest and taxes of 698 million euros ($1.08 billion) in the quarter after a loss of 69 million euros a year earlier.

In the quarter, Airbus delivered 123 airplanes compared to 115 in the same period a year earlier. It booked 395 net orders in the first three months. Gallois said he expects orders to slow in coming quarters.