Airbus on Wednesday posted a 49 per cent slump in first-quarter core profit.
The planemaker consumed an unprecedented €8 billion of cash in the first quarter as chief executive officer Guillaume Faury warned of the “gravest crisis the aerospace industry has ever known”.
Calling for an industry-wide campaign to restore confidence in flying Faury said there is a “need to work as an industry to restore passenger confidence in air travel as we learn to coexist with this pandemic”.
The company said consolidated revenues fell to €10.6 billion compared to €12.5 billion in the first quarter a year ago,, “reflecting the difficult market environment impacting the commercial aircraft business with 40 less deliveries than a year earlier, partly offset by a better mix and more favourable foreign exchange environment” The consolidated loss per share was €0.61 compared to a 2019’s first-quarter earnings per share of €0.05.
The aerospace group also reported a negative cashflow of €8.03 billion including a previously published record €3.6 billion fine to settle bribery and corruption charges in Britain, France and the United States.
“We saw a solid start to the year both commercially and industrially but we are quickly seeing the impact of the COVID-19 pandemic coming through in the numbers,” saidFaury.
Europe’s largest aerospace group also highlighted plans to save cash. “All nature of costs are now being reviewed,” Faury said.
Airbus has been unable to deliver more than a handful of aircraft since Europe-wide lockdowns began in mid-March and Faury said he expected similar difficulties in the second quarter before a clearer picture emerges in around June.
Faury said the company would continue work on its A320XLR as well as smaller planes like the A220 because he, like most of the rest of the industry, believes that domestic travel will recover faster thand any other segment and the single-aisle A320 is the workhorse of domestic routes in many countries.
He also said he believed the company would be able to make more adjustments to its plans by June because many airline customers are still trying to secure their own futures. “We are talking to our airline customers, we are monitoring their financial health…and we think by June we will know more about the health aspects and effects of the virus on aviation, we will know more data points on the economic impact and the speed of the recovery”, he said.
Airbus expanded furlough schemes on Tuesday by sending home 3,200 workers in Britain after putting 3,000 workers on government-backed partial unemployment schemes in France, and Faury said thousands of German staff could also be affected.
He did not say whether Airbus would carry out forced redundancies but told staff last week to prepare for “more far-reaching measures” to balance the group’s costs to the reduced outlook for aviation in coming years.
Curtiss-Wright Defense Solutions division has forged a strategic alliance and reseller agreement with Rancher Government Solutions (RGS), a provider of…
Saudia, the national airline of Saudi Arabia, has experienced a significant surge in brand value, as indicated by the latest…
The ongoing eruption of Mount Ruang in the Siau Islands regency, North Sulawesi, Indonesia has caused significant disruptions to air…
Scoot, the low-cost arm of Singapore Airlines, recently received the first Embraer E190-E2 aircraft at Changi Airport. "We are excited…
The first of two Fincantieri-built PPA (Pattugliatore Polivalente d'Altura - offshore multi-purpose patrol vessel) for the Indonesian Navy is expected…
Thailand’s DTI (Defence Technology Institute) and the Royal Thai Army recently conducted a successful test of the DTI-STD-003 bridge layer…
Eve Air Mobility has signed a letter of intent with AirX, Japan’s largest public helicopter air charter service, for up…
L3Harris Technologies has received a US$256 million order from the U.S. Army for continued production of the Enhanced Night Vision…
The Missile Defense Agency has selected Lockheed Martin to deliver the nation's new homeland missile defense capability, the Next Generation…
Collins Aerospace will introduce two major upgrades to the Ascentia software platform. Ascentia is a software solution for aircraft reliability management that…
Pratt & Whitney Canada's PT6A engine recently surpassed 25 million flight hours and 40 years of powering the Cessna Caravan…
The US Army deployed its Mid-Range Capability (MRC) missile system to Northern Luzon, Philippines for the first time. This deployment…
Milrem Robotics has secured a contract to deliver an undisclosed quantity of THeMIS UGVs (Unmanned Ground Vehicles) to the Japanese…
CMA CGM Air Cargo is set to expand its service by launching a transpacific route connecting Asia to North America…
Eve Air Mobility (Eve) has designated Korea Aerospace Industries Ltd. (KAI) as the supplier for the pylons of its electric…
Emirates SkyCargo, the cargo arm of one of the two flag carriers of the United Arab Emirates (UAE), has established…
Israel Aerospace Industries (IAI) has secured a contract to supply a Multi-Sensor Multi-Mission Radar (MS-MMR) system for the air defence…
The first Embraer E190F, a jet converted from passenger transport to freighter (E-Freighter), successfully concluded its inaugural flight in São…
The Government of Greece officially announced its plans to purchase 35 UH-60M Black Hawk helicopters from Sikorsky, a Lockheed Martin…
Cathay Cargo resumed its Ho Chi Minh City freighter service on April 4, 2024, after a four-year hiatus due to…
Skykraft has secured approval from the International Telecommunications Union (ITU) for its spectrum filing for a constellation of 2976 satellites.…
The U.S. Navy, in partnership with Lockheed Martin, has successfully conducted a historic Long-Range Anti-Ship Missile (LRASM) flight test with…
The U.S. Air Force has awarded Boeing a contract worth up to $559 million over five years to operate, maintain…
Israel Weapon Industries (IWI) introduced the ARBEL, hailed as the world’s first computerized small arms system, on Thursday (Apr. 4).…
Hong Kong’s Government Flying Service (GFS) has integrated the H175 helicopter flight simulator developed by Indra into their training regimen.…
After a hiatus of over 30 years, Air Canada is set to return to Singapore's Changi International Airport with the…
FLY91, India's youngest regional airline, announced a partnership with IBS Software on Wednesday (Apr. 3). Aiming to enhance its commercial…
Malaysia Airlines announced its partnership with RECARO Aircraft Seating to equip its upcoming Airbus A330neo aircraft with the CL3810 economy…
Rolls-Royce announced that the company has begun flight testing its latest aero engine the Pearl 10X on its dedicated Boeing…
Avolon, a global aviation finance company, has agreed to sell and lease back four new Airbus A330neo aircraft with Cebu…
Headquartered in Singapore with reporters spread across all major regions, GBP Aerospace & Defence is a leading media house that publishes three publications that serve the aerospace and defence sector - Asian Defence Technology, Asian Airlines & Aerospace and Daily News. Known industry-wide for quality journalism, GBP Aerospace & Defence is present at more international tradeshows and exhibitions than any other competing publication in the region.
For over three decades, our award-winning team of reporters has been producing top-notch content to help readers stay abreast of the latest developements in the field of commercial aviation, MRO, defence, and Space.
Copyright 2024. GBP. All Rights Reserved.
Home Defence & Security Space Commercial Aviation Maintence Repair & Overhaul Daily News Events About Us Click Me!
2024 GBP all rights reserved.