Airbus: 80% drop in deliveries in April

  •   11/05/2020 - 09h14
  •   DEHOUI Lionel

The news in the business world are numerous this Thursday. From the values of Wall Street to the news of companies like Technicolor or Renault, everything is there. The coronavirus remains at the heart of the various variations observed in balance sheets in the first quarter. As for the death toll caused by covid-19, it exceeds 260 000 in the world. As international travel is banned in several countries, airlines are therefore falling considerably.

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Airbus: 80% drop in deliveries in April
Image copyright: reeser - Flickr

80 % drop at Airbus

Following several world-class groups, the airline Airbus communicated on the effects of Covid-19 on its business. Indeed, the aircraft manufacturer Airbus recorded an 80 % drop in deliveries in the previous month (April). This fall occurred while the group operated with 14 aircraft. This 80 % drop is to be taken into account in relation to the group's deliveries a year ago.

 

The reason for this heavy loss

The car manufacturer immediately located or specified the only reason for this result. In its press release, the impacts of the health crisis caused by the Covid-19 are at the origin of this drastic drop. According to the aircraft manufacturer Airbus, which is very well known in Europe, the implementation of the various containment measures in several States has been harmful.

In other words, it caused the orders to drop to almost zero. However, the goal of the governments that have implemented these containment measures is to limit the spread of the coronavirus epidemic. The world fleet of aircraft has been virtually grounded by the same token.

 

Measures to resist

Faced with this situation, it was essential for airlines to develop strategies to deal with this reality. This is why the majority of companies simply postponed their orders. Because, they are obviously in financial difficulty and should act to preserve their cash flow. Airbus also had to adopt new sanitary measures to reduce the risks of contamination during the Covid-19 health crisis.

Indeed, the manufacturer has been forced to revise its production downwards. What he implemented by setting up two different teams. One of the teams is qualified as blue and the second as red. On the other hand, the Airbus company recorded 9 orders throughout the month of April, despite the containment measures. He points out that it was the Irish aircraft lessor Avolon that had launched its orders.

Note: These orders are just replacing orders cancelled in the past and coming from the same group. The objective in doing so is to delay its investors. From the first days of the year until this Thursday, the Airbus group has been able to deliver a total of 136 aircraft. But in 2019 and over the same period, it delivered 232. From January to today, Airbus has nevertheless won 299 net orders.