The first half was catastrophic for the French aircraft manufacturer due to the coronavirus crisis. Turnover fell by 39%.
Airbus delivered 196 planes in the first six months of the year, half as many as in the first half of 2019.
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Airbus announced Thursday that it had suffered a net loss of 1.9 billion euros in the first half of the year, reflecting the two-fold decline in its aircraft deliveries over the period marked by the impact of the coronavirus crisis.
“The impact of the Covid-19 pandemic on our finances is now very visible in the second quarter, with deliveries of commercial aircraft halved compared to last year”, observes the executive chairman of Airbus Guillaume Faury, quoted in a press release.
Airbus delivered 196 planes in the first six months of the year, half as many as in the first half of 2019, as airlines, brought to their knees by the traffic collapse, seeking to postpone their deliveries or being unable to receive them due to border closures. However, deliveries are a reliable indicator of profitability in aeronautics, mainly because customers pay most of the bill when they take possession of the planes.
Turnover in free fall
Airbus recorded a turnover down 39% for the half-year, to 18.9 billion euros and an operating loss of 1.6 billion euros. The group recorded a 900 million euros charge on its operating income because of the Covid-19.
To adapt to an upturn in air traffic, which should only return to its 2019 level between 2023 and 2025, the aircraft manufacturer has lowered its production rates by 40% compared to what it predicted before the crisis, with 40 Airbus A320s produced per month (compared to 60 in 2019), 4 A220s and 2 A330s. And he announced “a small adjustment in the production rate of the A350 from 6 to 5 aircraft per month”.
Airbus was producing 9 to 10 A350 long-haul aircraft per month before the crisis, which enabled it to achieve balance on this program.
During the first half of the year, the European aircraft manufacturer consumed 12.4 billion euros in cash, including 3.6 billion for the payment of fines in France, the United Kingdom and the United States at the end of an agreement reached in January in corruption cases.
“Our ambition is not to consume cash” in the second half of 2020, says Guillaume Faury. “We are facing a difficult situation and the uncertainty remains, but thanks to the decisions we have taken, we believe that we are well placed to weather this difficult period in our sector,” he adds.
Airbus has notably announced that it will cut 15,000 jobs worldwide, or 11% of its workforce, including 5,000 in France. He estimates the necessary provision to finance these social measures between 1.2 and 1.6 billion euros. Due to “limited visibility”, in particular on the resumption of deliveries, the group gives up issuing forecasts for 2020.
(AFP/NXP)
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