European plane maker Airbus posted a net loss Thursday (30 July) of 1.4 billion euros (US$1.7 billion) for the second quarter and said the fallout from the COVID-19 pandemic and the attendant shutdown in global aviation means it could not provide an outlook for the rest of the year. The net loss compares to a net profit of 1.16 million euros in the second quarter a year ago. “The impact of the COVID-19 pandemic on our financials is now very visible in the second quarter, with (first half) commercial aircraft deliveries halving compared to a year ago,” Airbus Chief Executive Guillaume Faury said.
At the end of June, roughly 145 commercial aircraft couldn’t be delivered because of the public-health crisis, the company said in its earnings release. Airbus’s closely watched adjusted earnings before interest and taxes also showed a loss of 1.23 billion euros.
Airbus said it would produce five A350 aircraft a month rather than the six it targeted in April, adding that it incurred 900 million euros of COVID-19 related charges against earnings and said a future restructuring provision could total 1.6 billion euros. Airbus delivered 74 planes in the quarter, less than one-third compared to a year ago. The company left its other production rates unchanged after it earlier cut production of its A320 narrowbody to 40 planes a month.