European aircraft maker Airbus has announced it is to discontinue making its A380 aircraft.

It comes after Emirates decided to reduce its demand for the aircraft from 162 units to 123.

Airbus has said the last delivery of the double-decker A380 is scheduled for 2021.

Airbus has said it will start discussions with its partners in the next few weeks regarding the 3,000 to 3,500 positions "potentially impacted" over the next three years.

The Emirates decision came following a review of its operations, and in light of developments in aircraft and engine technologies.

Inside the Airbus A380 business class cabin | Image: Airbus

The Dubai-based carrier will take delivery of 14 further A380s over the next two years.

Airbus has said "As a consequence and given the lack of order backlog with other airlines, Airbus will cease deliveries of the A380 in 2021."

Airbus chief executive officer, Tom Enders, said: "As a result of this decision we have no substantial A380 backlog and hence no basis to sustain production, despite all our sales efforts with other airlines in recent years.

"This leads to the end of A380 deliveries in 2021.

"The consequences of this decision are largely embedded in our 2018 full year results".

He added: "The A380 is not only an outstanding engineering and industrial achievement.

"Passengers all over the world love to fly on this great aircraft. Hence today’s announcement is painful for us and the A380 communities worldwide."

An Airbus A380 on the ground | Image: Airbus

The A380 has flown over 500,000 revenue flights carrying over 190 million passengers.

This includes more than 300 commercial flights per day, which take off or land around the world every two minutes.

Along with Emirates, other carries that use the A380 include Singapore Airlines, Lufthansa, British Airways and Qantas.