Airbus starts negotiating its industrial plan next week.
Airbus (PA: AIR) recorded 2,686 million euros in losses between January and September, compared to 2,186 million in profits it earned in the same period of 2019, the European aeronautical group announced in a statement on Thursday.
The worsening of the results is a reflection of the difficult situation that the aviation sector is experiencing in general and that has made it difficult to deliver aircraft, but also of several non-recurring elements.
Airbus explained that it has entered into its accounts a charge of 291 million euros for a series of financial instruments in relation to Dassault (PA: AVMD) Aviation and 236 million for the modification of the contracts of the repayable credits received from France and Spain after that the World Trade Organization (WTO) considered interest rates irregular.
It has also assumed a charge of 1.2 billion euros for restructuring costs, which, as announced in June, will mean a reduction of the workforce by 15,000 people, from a total of 130,000.
However, for the moment, it considers that the adaptations it is carrying out do not require a major restructuring effort.
The adjusted net operating result (Ebit) was negative of 2,185 million euros and the turnover suffered a fall of 35%, up to 30,161 million euros.
The company highlighted that it has made progress in adapting its business to the new COVID-19 market context, in particular in the adjustment between production and deliveries.
This has contributed to reducing cash outflows and it is precisely for this reason that a first financial objective has been set since the beginning of the crisis, which is to stop these cash losses in the fourth quarter.
This is possible, in particular because it has managed to reduce the number of aircraft pending delivery, which was 158 in summer and which has fallen to about 135.
With the new restrictive measures being put in place in Europe to face the escalation of coronavirus infections, Airbus assumes that the recovery of air traffic will be slower than it had expected until a few months ago.