Airbus has announced that it is cutting production of its A350 wide-body down to five jets a month after reporting a second-quarter operating loss of $1.4 billion in the wake of the coronavirus crisis.
“The impact of the Covid-19 pandemic on our financials is now very visible in the second quarter, with H1 commercial aircraft deliveries halving compared to a year ago,” said Airbus CEO Guillaume Faury in a statement.
Revenues decreased to $22.2 billion in the first half of 2020, driven by the difficult market environment impacting the commercial aircraft business with around 50% fewer deliveries year-on-year.
Net commercial aircraft orders in H1 totalled 298, including eight aircraft in Q2, compared with 88 aircraft in H1 2019.
A total of 196 commercial aircraft were delivered (H1 2019: 389 aircraft), comprising 11 A220s, 157 A320s, five A330s and 23 A350s.
At the end of June, around 145 commercial aircraft could not be delivered due to the pandemic.
Faury said: “We have calibrated the business to face the new market environment on an industrial basis and the supply chain is now working in line with the new plan. It is our ambition to not consume cash before M&A and customer financing in H2 2020.
“We face a difficult situation with uncertainty ahead, but with the decisions we have taken, we believe we are adequately positioned to navigate these challenging times in our industry.”