Airbus Posts €1.9 billion First-Half Loss, 145 Aircraft Orders Couldn’t be Delivered

Today, Airbus posted its half-year (H1) 2020 results in which it recorded a net loss of  €1.9 billion. Compared to last year’s €1.2 billion net income, Airbus has now thoroughly felt the impact of the coronavirus.

The European planemaker revealed that its second-quarter loss was larger from what it earlier expected. Airbus Chief Executive Officer Guillaume Faury stated:

The impact of the COVID-19 pandemic on our financials is now very visible in the second quarter, with H1 commercial aircraft deliveries halving compared to a year ago.

Similar to airlines and aerospace companies across the globe, Airbus is struggling to weather the crisis.

Additionally, it may need up to €1.6 billion for restructuring once firm agreements are finalized with its social partners.

Despite the horrific situation, Faury thinks that recovery is “not a question of if, but only when”.  He added:

We face a difficult situation with uncertainty ahead, but with the decisions we have taken, we believe we are adequately positioned to navigate these challenging times in our industry…

We believe it is going to be a long and slow recovery

He isn’t wrong. According to IATA, global passenger traffic won’t recover until 2024! So it is completely understandable that Airbus is planning to play the long game.

We have calibrated the business to face the new market environment on an industrial basis and the supply chain is now working in line with the new plan.

Airbus is also betting on “cash preservation” as the way forward. “It is our ambition to not consume cash before M&A and customer financing in H2 2020.”

Production Cuts

A320 Family
© Airbus

Only a day after Boeing announced slashing its aircraft production rate, Airbus has followed suit. It said that it will now produce just five A350s (down from six) each month. As for its A320 narrow-body twin-jet, it stated that it will consider ramping up production from as early as second-half next year.

This is still a silver lining in an otherwise grim landscape for the European manufacturer.

These production cuts are to accommodate the low number of aircraft orders that Airbus has received recently. It received only eight orders in the second quarter. This is because demand of new aircraft is virtually non-existent.

Another problem that stems from this is of deliveries.

Airbus said that by the end of June “around 145 commercial aircraft could not be delivered due to COVID-19. ” Despite the company’s aim to bring this number down “significantly” by this year’s end, there could be some left in storage for longer.  These stored units deprive Airbus from customer payments that land on delivery of these aircraft.

In total, only 196 orders were delivered by the end of July.

Earlier this month, Airbus unveiled its COVID-19 adaptation plan in which it planned up to 15 000 redundancies.

What do you think of Airbus’ first-half results? Do you think it will recover from the heavy blows inflicted from the coronavirus? 

Subscribe to our Weekly Digest!




More News

Travel Radar
Travel Radarhttps://travelradar.aero/
Articles from guest contributors wishing to remain anonymous are credited to this account. Want to contribute to Travel Radar either in-name, or anonymously? Get in touch: [email protected]

LEAVE A REPLY

Please enter your comment!


>
Wordpress themeseotakipçi satın alankara implant fiyatları11yol kapanıpassport psdbatman evden eve nakliyatbalkon köşe takımılastik patlatanevden eve nakliyatkartal evden eve nakliyatfatih antika eşya alanlarfenerbahçe antika eşya alanlarnakliyatantika alanlarantika alanlarwoocommerce baselJannah themeeskişehir inşaat şirketlerieskişehir uydu tamirkitap alanlarantika alanlarantika alanlarseoEskişehir uydueşya depolamapgcdpgcdpmsaAccident LawyerDental Implantiqos tereatuzla evden eve nakliyatAntika alan yerlergaziantep evden eve nakliyateskişehir saç protezihayır lokmasıtuzla evden eve nakliyatodunpazarı emlakhayır lokmasıpendik evden eve nakliyatgölcük evden eve nakliyatgölcük evden eve nakliyatistanbul evden eve nakliyatankara evden eve nakliyatbestwhoziporselen kaplama dislerankara diş estetiğidiş teli tedavisimersin evden eve nakliyatEtimesgut evden eve nakliyattuzla asansörlü nakliyatkartal evden eve nakliyatgebze evden eve nakliyatankara evden eve nakliyatankara parca esya tasımaankara gülüş tasarımıankara gülüş tasarımıankara implant fiyatlarıniğde evden eve nakliyatEskişehir yabancı dil okuluvozol 12000puffistanbul saç ekimiankara çıkışlı günübirlik turlarEtimesgut evden eve nakliyatEtimesgut evden eve nakliyatkadıköy evden eve nakliyatmersin evden eve nakliyatçankaya evden eve nakliyatankara parca esya tasımamaltepe evden eve nakliyattuzla evden eve nakliyatankara implant fiyatlarıankara gülüş estetiğiyenimahalle evden eve nakliyaten yakın çekiciAntalya Çittereatereaseo çalışmasıistanbul hayır lokmasıata şehir evden eve nakliyatmaltepe evden eve nakliyatüsküdar evden eve nakliyatmersin nakliyatelektrik taahhüt firmalarıgüneş enerji firmakepenk tamiriİstanbul evden eve nakliyatmaldives casinospoodletereaistanbul hayır lokmasıKartal evden eve nakliyatçankaya evden eve nakliyatataşehir evden eve nakliyatankara ofis taşımacılığıboğazda özel tekne kiralamadiş eti ağrısıtuzla nakliyateryaman evden eve nakliyateskişhir uydu servisieskişhir uydu servisitimepoodlepomeranianzibilyonbet girişraydium market idGaziantep Evden Eve Taşımacılıkdextools trendingdextools trending botdextools trending costdextools trending servicedextools trending algorithmdextools botcoinmarketcap trendingcoinmarketcap trending botpinksale trendingpinksale trending botpancakeswap botuniswap botpancakeswap sniper botuniswap sniper botfront running botfront run botmev botzibilyonbetzibilyonbet girişLibraNewsHair Transplantyks kitaplarıdextools botdextools trending algorithmpinksale trending botprediction botpancakeswap prediction bot
deneme bonusuCasinoslot girişbig bass bonanza oynaAviator oynasugar rush oynasweet bonanzagates of olympus oynaBahisnowdiyarbet girişCasinoslotwild west gold demo oynaredbullholdenracing.comdenemebonususiteler.commarsbahisMatadorbetMatadorbetEscortSaatlik escortManisa escortGümüşhane escortfethiye escortDeneme Bonusu Veren SitelerDeneme Bonusucasibomcasibom girişŞişli escortizmir escortDenizli escortMalatya Escortşanlıurfa escortHacklinkBeşiktaş escortAtaşehir escortBeylikdüzü escortkadıköy escortcialisViagraBahis siteleriEsenyurt escortbets10masözmasözantalya escortcasibombonusbetturkeyfixbetcasibomessbahisdeneme bonusu veren sitelerdeneme bonusu 2024casibombets10bahisbetapusulabet girişpusulabetbetmatik twitterbaywinGrandpashabetcasibomholiganbetbettilt girişcasibom girişslot siteleridumanbetbetmatikbetkanyonsekabetholiganbetbetmatikcasibomcasibomcasibomcasibomcasibomcasibomcasibomcasibomcasibomJetbahishitbetsahabetsahabetbettiltvdcasinoilbetcratosroyalbettümbetbaywindinamobetelexbetsekabetbetkanyonbetmatikbetinetumbetrexbetgrandpashabet girişgrandpashabet twittergrandpashabetmarsbahisholiganbetholiganbettipobetholiganbetmarsbahisslot sitelericanlı casino sitelericasino sitelerislot siteleribahis siteleribaywinİnterbahiscasibomcasibomcasibomqueenbetmostbetlunabetmadridbetartemisbet