The airline industry turns out as among the greatly affected by coronavirus pandemic with many players in the industry calling out for injections and bailouts if they are to get back on their feet.
Europe largest aerospace company Airbus SE (EPA: AIR) posted its quarterly results recording a 49% decline in profit after recording 281 million euros ($304.7 million) in the coronavirus fueled first quarter.
Revenue for the company in the quarter stood at 10.631 billion euros, equally signifying a 15% decline in comparison to the previous quarter.
Following the results, Airbus suspended its dividend payment and financial guidance for the year. The firm is also engaging its lenders to renegotiate payment terms.
Airbus came out calling the aerospace industry to join together and work on finding best solution of getting out of what it termed as ‘gravest crisis the aerospace industry has ever known’ for they have a mandate to restore confidence in the industry.
The pandemic added salt to injuries for the firm in the first quarter since Airbus made cash outwards in the quarter totaling to 8 billion euros, among the payments included a jaw dropping 3.6-billion-euro fine settlement of corruption cases in U.S, France and UK.
Undoubtedly, Airbus must be going through tough financial times at the moment considering unfolding and development of the pandemic which has left many airlines worldwide with no other option than grounding a majority of their aircrafts.
In the beginning of the week, the company laid off a total of 3,200 employees in Britain. Not long ago the company placed 3,000 employees under government-backed partial unemployment schemes in France.
Chief Executive Officer of Airbus, Guillaume Faury , said its thousands of German employees will be affected also. The company is doing everything at its reach to cut cost which will help it survive the pandemic, he said they are in the process of finalizing more far reaching measures.
“All nature of costs are now being reviewed. We are doing everything we can to be in the best shape for competing again later,” said Faury on a video conference.
Earlier in the month, Airbus reduced production of aircrafts by between 30 to 42% depending on the model. Chief financial officer, Dominik Asam, claims if the pandemic situation goes on then, before June they might scale down production further.
Asam said the company is taking any viable measures with an aim of breaking even or not spending any cash by the time the fourth quarter kicks in.