The collapse in air traffic sent Airbus into the red in the first half of the year, reflecting the halving of its aircraft deliveries. The European aircraft manufacturer suffered a net loss of 1.9 billion euros over the first six months of the year, like the $ 2.4 billion loss of its American rival Boeing, mired in the crisis of the 737 MAX, but which can rely more on its defense activities.
"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" during the first six months, observes the executive chairman of Airbus Guillaume Faury, quoted in a press release.
145 aircraft could not be delivered during the semester
Airbus, which recorded 298 net orders in the first half, delivered 196 aircraft during the period. Airlines, brought to their knees by the traffic collapse, seek to postpone their deliveries or are unable to receive them due to border closures. The second quarter was particularly complicated with 74 planes delivered, against 20 for Boeing. In total, around 145 planes could not be delivered during the semester, due to the epidemic, details the European aircraft manufacturer.
The turnover is affected: at 18.5 billion euros, it fell 39% over the half-year, 48% for the commercial aircraft division alone, to 12.5 billion euros. As a result, the European aircraft manufacturer recorded an operating loss of 1.6 billion euros, suffering in particular from a charge of 332 million euros linked to the end of the A380 wide-body aircraft program in 2021. The group also recorded 900 million euros in expenses on its operating income because of the Covid-19.
"We believe we are in a good position to get through this difficult period"
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 forecast before the crisis, with 40 Airbus A320s produced per month (compared to 60 in 2019), 4 A220s and 2 A330s. The aircraft manufacturer, however, “made a small adjustment to 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.
With 15,000 jobs lost, is Airbus pushing the plug too far? https://t.co/iYnuhxGp2u
- 20 Minutes (@ 20Minutes) July 1, 2020Despite the call from local officials on Wednesday to maintain the project to open a new assembly line for the A321 in Toulouse, Airbus maintains the freezing of the project. "We cannot invest in a new production facility when (…) we do not have the activity to fill it", justifies the aircraft manufacturer.
To adapt to the crisis, Airbus is cutting investment spending, reducing R & D spending while "preserving strategic projects" and announced the elimination of 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. “It is a difficult and uncertain situation,” summed up Guillaume Faury during a conference call. "But with the decisions we have made and now implemented, we believe we are well positioned to weather this difficult time in our industry."
Economy
Coronavirus: The government does not want forced departures at Airbus
Economy
Toulouse: "Do not scuttle, do not lose our skills", claim the employees of Airbus
- Aeronautics
- Airbus
- Coronavirus
- Toulouse
- World
- Covid 19
- Economy
- Aviation