Airbus has announced a net loss of £1.9 billion for the first half of 2020, as CEO Guillaume Faury said that the impact of Covid-19 was “now very visible in the second quarter”.
The manufacturer delivered around 50 per cent fewer aircraft in the first half (196 compared with 389 the previous year), and took just eight aircraft orders in the second quarter. Revenue fell from €30.9 billion in the first half of 2019, to €18.9 billion during the same period this year.
Earlier this month the firm announced plans to cut 15,000 jobs globally, including 1,700 in the UK.
Airbus had already cut the production rate of some of its aircraft due to falling demand as a result of Covid-19, and now says that it will further slow production of its A350s from six to five aircraft per month.
“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,” said Faury.
“It is our ambition to not consume cash before M&A and customer financing in H2 2020. 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.”
This week rival aircraft manufacturer Boeing reported a second quarter loss of $2.4 billion, impacted by both the Covid-19 pandemic, and the ongoing grounding of the B737 Max.
Boeing also confirmed it will end production of its iconic B747 jumbo aircraft in 2022.