Airbus reports 2019 net loss of 1.36 bn euros

  • Airbus reports 2019 net loss of 1.36 bn euros

Airbus reports 2019 net loss of 1.36 bn euros

NET LOSS: The European plane maker swung to a loss in 2019 as it reported a EUR3.6 billion penalty from a corruption probe settlement and EUR1.2 billion charges from its A400M program. As a result, the commercial aircraft unit brought in $59.4 billion (€54.7 billion) of revenue and as of December 31, 2019, Airbus' order book is now worth more than $512 billion (€471 billion), with customers signing up for 7,482 aircraft.

CEO Guillaume Faury called it "a strong underlying financial performance" while acknowledging that "of course we can not be satisfied" with the net loss. Airbus shares were up 0.8% at 0908 GMT. The company boosted orders to 768 as competitor Boeing stumbled because of the grounding of the 737 MAX jet after two crashes that killed 346 people. But production issues with the European group's own single-aisle A320 jet family may limit its ability to respond.

Faced with the danger caused by the outbreak of coronavirus in China, which has sent rippling effect in the entire airline industry, and the global economy as a whole, Airbus maintains its tone, assuring that the impact on the company would not be a substantial one, contrary to many beliefs.

Nonetheless, Faury acknowledged some Chinese airlines had requested "very short-term" postponements of new jet deliveries that he described as logistical.

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The long-delayed A-400M programme delivered 14 planes in 2019, on schedule, but is now hampered by "increasingly challenging" obstacles including repeated extensions to a German export ban on Saudi Arabia, Airbus said.

Given a tough year, the CEO of Airbus - Guillaume Faury, had announced that the company would be concentrating on improving operational improvements and cost enhancements, along with strengthening the company's culture. The group said it expected about 2 billion euros in further related losses by mid-decade.

For the fourth quarter, adjusted operating income fell 9 per cent to €2.8 billion, ahead of the €2.74 billion expected by analysts, according to an Airbus consensus poll.