Airbus Faces The Toughest Situation

April 30, 2020

Airbus announced a net loss of 481 million euros in the first quarter of 2020, compared with a net profit of 40 million euros in the same period last year.

Adjusted earnings for the quarter were 281 million euros, down from 549 million euros in the fourth quarter of 2019, a decrease of 49%.

However, the situation is expected to deteriorate further in the coming months.

Commenting on the results, Airbus CEO Guillaume Faury said: “We have seen a solid start year in both business and industry, but we soon saw the quantitative impact of the Covid-19 pandemic.

“We are now in the worst crisis known to the aerospace industry.

“We are taking many measures to ensure the future of Airbus.

“We started by increasing available liquidity to support financial flexibility.

“We are adjusting the productivity of commercial aircraft according to customer needs and focusing on cash containment and our long-term cost structure to ensure that once the situation improves, we can resume normal operations.”

Consolidated revenue declined from 12.5 billion euros in 2019 to 10.6 billion euros, reflecting the difficult market environment affecting the commercial aircraft business.

In the three months ended March 31, Airbus delivered 122 aircraft, 40 fewer than the 162 aircraft delivered to airlines in the same period last year.

The manufacturer delivered a total of 8 A220, 96 A320 series aircraft, 4 A330 and 14 A350.

In the long run, at the end of March, Airbus ordered 7,650 commercial aircraft.

Airbus’s 2020 guidelines were also withdrawn in March.

The company added that Covid-19’s impact on the business will continue to be evaluated, and given the limited visibility, especially in terms of delivery, the company will not issue new guidance.