Airbus Reports 55% Revenue Decline Amid Pandemic
Airbus reported a 55% decline in revenue in the Second Quarter (Q2) of 2020 compared to 2019, as the company’s CEO said the financials show the visible impact of the COVID-19 pandemic.
The company released its financial results Thursday, reporting consolidated revenues in Q2 of $9.8 billion (8.3 billion euro), down from $22 billion (18.3 billion euro) in the same time period in 2019, which the company attributed to lower deliveries at Airbus and Airbus Helicopters, and lower revenues at Airbus Defence and Space. Airbus also reported a Q2 net loss of $1.6 billion (1.4 billion euro), which the companies said mainly reflected EBIT and the low effective tax rate.
Airbus Defence and Space segment’s order intake increased 32% to $6.6 billion (5.6 billion euro). But the segment reported $2.8 billion (2.4 billion euro) in revenues in Q2 2020, down 16% from Q2 2019. Revenues for the segment were impacted by lower volume and mix, in particular at Space Systems, as well as delays in some programs due to the COVID-19 situation.
CEO Guillaume Faury said Q2 financials show the “very visible” impact of the pandemic, with First Half Year (H1) commercial aircraft deliveries halving compared to a year ago.
“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. 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,” Faury said.
Airbus withdrew its Full Year guidance in March because of the impact of the pandemic, and did not issue a new guidance.