Airbus becomes unprofitable due to pandemic

US, WASHINGTON (ORDO NEWS) — The European aerospace group Airbus, one of the two largest in the world along with the American Boeing, received a loss of 481 million euros in January-March 2020, and a year earlier there was a profit of 40 million euros for the same period, the concern said.

Due to a pandemic in the world, orders for new aircraft have declined. Airbus in Q1 reduced supplies to 122 from 162 aircraft in Q1 a year earlier.

In February-March, the delivery of 60 aircraft was canceled due to a pandemic, despite the fact that in January the company increased supplies.

“Now you can see the impact of the COVID-19 pandemic,” said Airbus CEO Guillaume Fori, whose words are quoted in a press release.

Airbus has provided its employees with an extremely bleak picture of the effects of the coronavirus crisis. The management of the aircraft concern addressed 135 thousand employees in corporate mail, warning of impending more massive job cuts and emphasizing that immediate action is a matter of company survival.

In a letter to staff, Guillaume Fori, CEO, says Airbus is “spending cash at an unprecedented rate,” almost expiring cow, and that cutting production was not the worst-case scenario for the company.

Airbus lost a third of its business in a matter of weeks, as the coronavirus pandemic hit airline revenues, which began to refuse to buy new aircraft. As Fori noted, the current spending rate jeopardizes “the very existence of our company.”

“We must act urgently to reduce the withdrawal of our funds, restore our financial balance and ultimately regain control of our destiny,” Fori said.

Earlier, Airbus has already sent 3,000 employees on vacation. True, the company was supported by the French government in this, which allocated funds for partial compensation of wages.

But, according to Fori, this is not enough, and much more people will go home soon, and not the fact that with compensation and the opportunity to return back. The company is already considering an extremely large-scale restructuring plan, and, according to a number of industry sources, about 10 thousand Airbus employees may be left without work by the summer.

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