NEW YORK (TheStreet) -- Shares of Airbus Group (EADSY) are surging, up 6.02% to $18.05, after reporting better than expected first quarter earnings.

The aerospace company overcame the impact of higher costs for its new A350 jet, which remains on track for a late-2014 debut, and after it issued an upbeat report on A350 testing and exceeded profit forecasts by about 10%, Reuters reports.

First quarter operating income before one-off items fell by a smaller than expected 4.6% to 700 million euros, or $963 million, as revenue increased 5% to 12.6 billion, and analysts said it had improved execution on key programs, Reuters said.

Analysts were on average expecting underlying quarterly operating income to decline 13%t to 644 million euros on revenue of 12.4 billion, according to a poll carried out for Reuters. 

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