Travel Industry News at TravelNewsAsia.com since 1997. Interviews, podcasts, videos, pictures and more
Thu, 29 October 2020

Airbus Reports 9M 2020 Results

Airbus has reported consolidated financial results for the nine months ended 30 September 2020.

Net commercial aircraft orders totalled 300 (9m 2019: 127 aircraft) with the order backlog comprising 7,441 commercial aircraft as of 30 September 2020.

Airbus Helicopters booked 143 net orders (9m 2019: 173 units), including 8 H160s and 1 H215 during the third quarter.

Airbus Defence and Spaces order intake increased to 8.2 billion, with the third quarter including an additional A330 MRTT as well as contract wins in telecommunications satellites.

After nine months of 2020 we now see the progress made on adapting our business to the new COVID19 market environment. Despite the slower air travel recovery than anticipated, we converged commercial aircraft production and deliveries in the third quarter and we stopped cash consumption in line with our ambition, said Airbus Chief Executive Officer Guillaume Faury. Furthermore, the restructuring provision booked shows our discussions with social partners and stakeholders have advanced well. Our ability to stabilise the cash flow in the quarter gives us confidence to issue a free cash flow guidance for the fourth quarter.

Airbus A380. Picture by Steven Howard of TravelNewsAsia.com Click to enlarge.

Consolidated revenues decreased to 30.2 billion (9m 2019: 46.2 billion), driven by the difficult market environment impacting the commercial aircraft business with around 40% fewer deliveries year-on-year.

A total of 341 commercial aircraft were delivered (9m 2019: 571 aircraft), comprising 18 A220s, 282 A320 Family, 9 A330s and 32 A350s. During the third quarter of 2020, a total of 145 commercial aircraft were delivered including 57 deliveries in September.

Airbus Helicopters reported broadly stable revenues, reflecting lower deliveries of 169 units (9m 2019: 209 units) partially compensated by higher services.

Revenues at Airbus Defence and Space mainly reflected lower volumes in Space Systems and for the A400M as well as the impact of COVID19 on business phasing. A total of 5 A400M military airlifters were delivered over the nine month period with Luxembourg becoming a new operator.

Consolidated EBIT Adjusted an alternative performance measure and key indicator capturing the underlying business margin by excluding material charges or profits caused by movements in provisions related to programmes, restructuring or foreign exchange impacts as well as capital gains/losses from the disposal and acquisition of businesses totalled -125 million (9m 2019: 4,133 million).

Airbus EBIT Adjusted of -641 million (9m 2019: 3,593 million) mainly reflected the reduced commercial aircraft deliveries and lower cost efficiency. It also included -1.0 billion of COVID19 related charges. The necessary steps have been taken to adapt the cost structure to the new levels of production and the benefits are materialising as the plan is executed. At the end of September, the number of commercial aircraft that could not be delivered due to COVID19 had reduced to around 135.

Airbus Helicopters EBIT Adjusted increased to 238 million (9m 2019: 205 million), reflecting a favourable mix, higher services, a positive contribution from programme execution as well as lower Research & Development (R&D) expenses. During Q3, the first five-bladed H145 helicopter was delivered following certification by the European Union Aviation Safety Agency in Q2.

EBIT Adjusted at Airbus Defence and Space decreased to 266 million (9m 2019: 355 million), mainly reflecting the lower volume in Space Systems, especially in the launcher business due to the impact of COVID19, partly offset by cost reduction measures. The divisions restructuring plan updated in H1 2020 is underway and negotiations with the social partners are progressing. The related provision has been recorded in Q3 as part of the EBIT Adjustments.

Consolidated self-financed R&D expenses totalled 2,032 million (9m 2019: 2,150 million).

Consolidated EBIT (reported) was -2,185 million (9m 2019: 3,431 million), including Adjustments totalling a net - 2,060 million. These adjustments comprised:

* -1,200 million booked in Q3 related to the company-wide restructuring plan, of which -981 million were for Airbus and -219 million for Airbus Defence and Space. The amount takes into account government support measures. It reflects the latest status of the negotiations with social partners, and therefore may be reassessed;

* -358 million related to the A380 programme cost, of which -26 million were in Q3;

* -374 million related to the dollar pre-delivery payment mismatch and balance sheet valuation, of which -209 million were in Q3;

* -128 million of other costs including compliance, of which -11 million were in Q3.

The consolidated reported loss per share of -3.43 (9m 2019 earnings per share: 2.81) includes the financial result of -712 million (9m 2019: -233 million). The financial result mainly reflects a net -291 million related to Dassault Aviation financial instruments, as well as a Repayable Launch Investment (RLI) re-measurement of -236 million, mainly from amending the French and Spanish contracts to what the World Trade Organisation considers the appropriate interest rate and risk assessment benchmarks. It also includes the impairment of a loan to OneWeb, recognised in Q1. The consolidated net loss was -2,686 million (9m 2019 net income: 2,186 million).

Consolidated free cash flow before M&A and customer financing amounted to -11,798 million (9m 2019: -4,937 million) of which +0.6 billion were in the third quarter. The Q3 2020 free cash flow performance reflects the higher level of deliveries compared to the prior quarter, cash containment efforts and the strong focus on working capital management.

Capital expenditure in the nine month period was around 1.2 billion, down by around 0.3 billion year-on-year, driven by a reduction in spending in the third quarter in line with the companys cash containment efforts. Consolidated free cash flow was -12,276 million (9m 2019: -5,127 million). The consolidated net debt position was -242 million on 30 September 2020 (year-end 2019 net cash position: 12.5 billion) with a gross cash position of 18.1 billion (year-end 2019: 22.7 billion).

Outlook

The companys Full-Year 2020 guidance was withdrawn in March. Given the continued impact of COVID19 on the business and the associated risks, no new guidance has been issued on commercial aircraft deliveries or EBIT.

As the basis for its Q4 2020 guidance for free cash flow before M&A and customer financing, the company assumes no further disruptions to the world economy, air traffic, Airbus internal operations, and to its ability to deliver products and services. On that basis, the company targets at least breakeven free cash flow before M&A and customer financing in the fourth quarter of 2020.

It should be noted that on 21 October 2020, the company signed a new 6 billion Revolving Syndicated Credit Facility partially terming out the 15 billion credit facility by 3 billion and in order to refinance its existing 3 billion Revolving Syndicated Facility.

See latest Travel News, Video Interviews, Podcasts and other news regarding: COVID19, Airbus.

Headlines: Melia's Third Hotel in Thailand to Open in December  John Davison, President and CEO of Four Seasons, to Retire in 2022  Etihad Airways Signs UPA Retailing Agreement with ATPCO  Marriott to Almost Double Number of St. Regis Resorts in Next Few Years  Malaysia Airlines and SEGi Sign MOU to Strengthen Aviation's Talent Pipeline  British Airways Launches Cabin Crew Recruitment Drive  JCAB Approves ANA's A320 and A380 MFF Operations  Boeing Appoints Heidi Grant as Vice President of Business Development  Frontier Airlines to Save Time and Money with Skywise Health Monitoring  7,200 Solar Panels Make Four Seasons Seychelles Even More Sustainable  Air Astana to Launch Flights to Phuket, Thailand; Increase Dubai Service  Air Canada to Increase Flights to Delhi, India  Singapore Airlines Partners Golden Door Spa Resort in California  UK Recovery Severely Delayed by Lack of Spending by International Visitors  Embraer-CAE Training Services to Establish Phenom 300E FFS in USA  Steering Group to Study Feasibility of Establishing Women's Lions Team  Elbit Systems Upgrades E-LynX Family of Software Defined Radios  Ascott Signs 1,905 Serviced Residences in Hanoi, Vietnam  Schedule for HSBC World Rugby Sevens Series 2022  CEVA Logistics First to Achieve CEIV Lithium Battery Certification  Cathay Pacific to Increase NDC Content on Amadeus  Amber Asher Appointed CEO of Standard International  Accor Implements GroupSync  Bombardier Signs MOU with Signature Flight Support  IATA Calls on Air Cargo Industry to Continue Working Together  SIA to Launch Vancouver, Seattle Flights; Convert San Francisco to VTL Service  COVID Helped Us Fast-Track Our Transformation Plans, says Tony Fernandes  Robert Cousins Appointed GM of Niccolo Suzhou  Kathy Fong Appointed CM of Sabre's Travel Agency Business in Hong Kong  Burj Al Arab in Dubai Starts Charging for Hotel Tours  Captain Izham Ismail Joins IATA's Board of Governors  Dassault Showcasing Full-Scale Falcon 10X Cabin Mockup at NBAA-BACE  NetJets Orders Up To 100 More Embraer Aircraft  Singapore Airlines Expands Vaccinated Travel Lane Network to 14 Cities  AirAsia Indonesia to Resume Jakarta - Bali Flights on 14 October  Qantas to Operate Direct London Flights Via Darwin, Australia  British Airways to Resume Airbus A380 Flights  Emirates to Add HBO Max to Inflight Entertainment  Air France to Operate Flights to 182 Destinations This Winter  Whitbread to Convert Former Police Station into a hub by Premier Inn  Air Belgium Takes Delivery of First of Two Airbus A330-900s  Smiths Detection Opens Technology Development Centre in Bangalore, India  France Bestows Peter Borer of HSH with Legion of Honour  Plaza Premium Opens Lounge at London Gatwick Airport  Dassault Aviation Upgrades Interior of Falcon 8X  ATR Opens High Tech Customer Experience Studio in Toulouse, France  United Airlines to Operate 91% of Domestic Capacity in December  Global Medical Response Orders 21 More Airbus Helicopters  BIG Members Can Now Redeem Points for Tech Courses at airasia academy  UK Reduces Red List from 54 Countries to Just Seven  Ascott Opens First lyf in China; Signs Second lyf in Bangkok, Thailand  AirAsia Signs Deal to Convert Remaining A320s on Order to A321neos  Quarantine Remains Biggest Deterrent to Air Travel  Outrageous Airport and ANSP Charges Will Stall Recovery, IATA Warns  Travellers Must be Fully Vaccinated to Fly with AirAsia Malaysia  United Airlines to Accept PayPal for Inflight Purchases  Jet2 Orders 15 More Airbus A321neo Aircraft  ATAG Calls on Governments to Support Net Zero Goal  VLCC Wellness Medi-Spa to Open at Avani+ Hua Hin in January  Six More Airlines Expand Use of IATA Travel Pass  Honeywell Launches New Aircraft Cockpit System  Emirates Signs New Distribution Agreement with Sabre  GKN and KTH Developing Fan Technology for Electric Aircraft  CWT Appoints Cristina Scott as Head of Financial Services  Air Caledonie Expands GMA Contract with ATR  Qatar Airways and RwandAir Sign Codeshare Agreement  IATA AGM to Take Place in China for Third Time in 2022  ICAO Adopts International Standard for Vaccine Certificates  SLH Promotes Sustainable Hotels with Launch of the 'Considerate Collection'  Global Air Transport Industry Commits to Net Zero Carbon Emissions by 2050  Eve Signs LOI to Develop UAM Ecosystem in Latin America with Avantto  Airline Industry Losses in 2020-2022 Expected to Reach US$201 Billion  Centara to Open 607-Room Resort in Dubai  Korean Air Receives Airbus A220 Best Operational Excellence 2021 Award  Qatar Airways Launches Themed Stopover Packages  Embraer Reports Strong Demand for Agricultural Aircraft  New COVD19 Screening Facilities Open at KLIA  Air Canada to Expand Cold Chain Handling Capabilities at Toronto Pearson  Flyr Implements Range of Airline Solutions from SITA  UNWTO Partners Netflix to Promote Screen Tourism  Gulf Air Launches Flights Between Bahrain and Tel Aviv, Israel  Beyeonics Surgical and Beyeonics Vision Raise $36 Million  Qantas to Resume Int. Flights in November; SYD-LHR and SYD-LAX First  Thai AirAsia to Expand Domestic Network  Kew Green to Manage First Collection of Light Human Hotels  Int. Passenger Demand Down 68.8% in August; All Regions Show Improvement  Qatar Airways to Increase Flights to Egypt  CWT Partners TST to Simplify Tax and Immigration Compliance for Travellers  Bombardier Signs Firm Order for 20 Challenger 3500 Business Jets  Simpson Marine Sells Two Luxury Sanlorenzo Yachts  Qatar Airways Resumes Flights to Medina, Saudi Arabia  Sabre Launches SynXis Property Hub  Kew Green Signs Three More Hotels in Bangkok, Thailand  Air France Takes Delivery of First of 60 Airbus A220 Aircraft  Boeing Appoints Kuljit Ghata-Aura as President - Middle East, Turkey and Africa  Hokkaido Air System Takes Delivery of Third ATR 42-600  Sebastien Carre Returns to Mauritius as RVP and GM of Four Seasons Resort  Air Cargo Demand in August Increases 7.7% on Pre-COVID19 Levels  Argentina Extends Contract to Host MotoGP for Further Three Years  Korean Air Completes Largest IT Modernization Project in its 52-Year History  Neil Palmer Joins Six Senses as COO  Radisson Appoints Evelyn Wong as VP Finance, Tax & IT - Asia Pacific  American Airlines Signs Codeshare Agreement with IndiGo  Executive Appointments at Outrigger Hospitality in Thailand  HD Videos and Interviews  Podcasts from HD Video Interviews  RSS News Feed and Ticker  Travel Trade Shows  High-Res Picture Galleries  Travel News Asia - Latest Travel Industry News 

Receive our Latest Travel News Daily Email free of charge by entering your email address and name in the boxes to the right and clicking subscribe. By subscribing, you agree with Revue's Terms of Service and Privacy Policy. You can also receive the news by WhatsApp, stay updated with our RSS Feed Travel Industry News by TravelNewsAsia.com, and even Add the Headlines to Your Website free of charge. Have questions? Please read our travel news FAQ.

     
Advertising
Advertising
Copyright © 1997-2021 TravelNewsAsia.com