Airbus eyes 2021 profit recovery after €510m 2020 loss

Photo: EPA

The France-based plane-maker Airbus announced it was planning to recover to pre pandemic levels of output and profit after accumulated loss of 510 million euros in 2020. The European company managed to curb the negative impact of Covid-19 economic setback by restructuring costs and withholding dividends, Reuters elaborated.

Airbus, which has overtaken its US rival Boeing to become the world’s largest jetmaker after a 20-month safety grounding of the Boeing 737 MAX, predicted flat 2021 deliveries and adjusted operating profit of 2 billion euros . Airbus last month reported 566 commercial deliveries for 2020 and noted it aimed for stability in 2021. But it also said it aims to increase underlying output this year, albeit at a slower rate than previously anticipated.

“We have issued guidance to provide some visibility in a volatile environment,” chief executive Guillaume Faury said in a statement, adding that many uncertainties remained for 2021. Airbus The France-based maker of jetliners and helicopters posted a full-year operating loss of 510 million euros, weighed down by charges booked in previous quarters, notably for coronavirus restructuring and the closure of the loss-making A380 programme. On a widely watched adjusted basis, Airbus stayed in the black but saw operating profit drop 75% to 1.7 billion euros as plunging airline demand drove revenues down 29% to 49.9 billion. Airbus said it expected free-cashflow breakeven in 2021.

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