{"id":40724,"date":"2020-04-29T13:44:08","date_gmt":"2020-04-29T13:44:08","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2020\/04\/29\/airbus-reports-515m-in-first-quarter-losses\/"},"modified":"2026-08-07T23:20:51","modified_gmt":"2026-08-07T23:20:51","slug":"airbus-reports-515m-in-first-quarter-losses","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/industry\/2020\/04\/29\/airbus-reports-515m-in-first-quarter-losses\/","title":{"rendered":"Airbus reports $515M in first-quarter losses"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">PARIS \u2014 Airbus says the aviation industry\u2019s unprecedented troubles are just beginning.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The European manufacturing giant reported \u20ac481 million (U.S. $515 million) in losses in the first quarter, put thousands of workers on furlough and sought billions in loans to survive the coronavirus crisis. And its CEO said Wednesday it\u2019s still at an \u201cearly stage.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Even after virus-related travel restrictions eventually ease, Chief Executive Guillaume Faury acknowledged it will take a long time to persuade customers to get back on planes. Just how long, he can\u2019t predict.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/outlook\/2019\/12\/02\/ceo-of-airbus-defence-and-space-on-what-will-be-vital-in-2020\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"169\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/Hoke_Airbus.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">CEO of Airbus Defence and Space on what will be vital in 2020<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">The defense industry in Europe is &quot;on standby, but political decisions need to be taken first,&quot; says Dirk Hoke.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">\u201cWe are in the gravest crisis the aerospace industry has ever known,\u201d Faury said. \u201cNow we need to work as an industry to restore passenger confidence in air travel as we learn to coexist with this pandemic.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Images shared online of packed planes and maskless, elbow-to-elbow passengers on U.S. flights \u2014 despite virus protection guidelines &#8211; have worried travelers and airline unions alike. International travel restrictions, meanwhile, have grounded thousands of planes worldwide.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Faury insisted that airplanes are \u201cprobably the best place to be\u201d during a virus outbreak because of air filtration systems put in place after previous virus outbreaks and other threats, but said Airbus will work with aviation authorities to try to calm the public.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Shares in Airbus and Boeing have dropped some 60 percent this year as customer airlines collapse or seek billions of dollars in government bailouts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Airbus was unable to deliver 60 planned planes in the quarter because of virus-related problems, and said the second quarter looks similarly rough. Customers are asking for delays, which Faury called \u201cthe biggest issue we are managing at the moment.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Airbus executives expressed hope Wednesday that deliveries could start picking up in the second half of the year. But they refused to issue long-term guidance given that the virus is still spreading, and that governments are reluctant to relax international travel restrictions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">U.S. rival Boeing is facing <a href=\"https:\/\/www.defensenews.com\/industry\/2020\/04\/17\/boeing-set-to-reopen-major-military-helicopter-production-hub-for-h-47-and-mh-139\/\" target=\"_blank\">similar woes<\/a>. Boeing\u2019s CEO said Monday that it will take years for the aircraft-building business to return to levels seen before the coronavirus pandemic.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Airbus has slashed production by a third since the virus hit, and Faury said Airbus will study \u201cresizing\u201d the company after the crisis ebbs \u2014 a worrying prospect on a continent where Airbus has factories in four countries and is one of the region\u2019s industrial leaders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Already 3,000 Airbus workers in France are on temporary unemployment and the number is expected to grow. In addition, 3,200 workers in the U.K. are on furlough and negotiations are under way to put thousands of German workers on short work plans.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A recent letter by Faury warning workers that the company is \u201cbleeding cash\u201d was a shock to many. But Frederic Romain of French union CFTC said \u201cthe situation requires transparency. It allows workers to open their eyes\u201d to what\u2019s ahead.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cFears? We have a lot of them. For the moment we don\u2019t have a clear vision of what awaits us,&#8221; Romain said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Airbus reported a 15 percent drop in revenues to \u20ac10.6 billion in the first quarter.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Looking longer term, Faury insisted that Airbus remains committed to reducing airplane emissions but said it\u2019s \u201cless urgent\u201d than before the coronavirus crisis because the company has more pressing problems to solve. \u201cFor practical cash reasons,&#8221; Airbus has stopped or suspended some projects aimed at \u201cdecarbonizing\u201d its production, he said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The European aircraft manufacturer says the aviation industry\u2019s unprecedented troubles are just beginning.<\/p>\n","protected":false},"author":7,"featured_media":6430,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":12,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[7,9,160,12,36],"tags":[],"coauthors":[2932],"class_list":["post-40724","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-air","category-coronavirus","category-daily-news-roundup","category-industry","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"BAOG5HK2GVGBXFMOEE6SSYWGOE","arc_canonical_url":"\/industry\/2020\/04\/29\/airbus-reports-515m-in-first-quarter-losses\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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