The violence of the historic crisis in which aeronautics plunged, in the wake of the collapse of air traffic due to Covid-19, continues to be seen in the monthly performances of Airbus. The European giant announced that it had won no new order in May 2020. This is worse than in April, marked by the signing of two new contracts. In five months, Airbus has totaled 299 net orders.
However, the manufacturer did not deplore any cancellations in May, as in April. Since the start of the year, cancellations have represented 66 aircraft, concentrated in the first quarter of 2020. In addition, its order book remains very solid with 7,621 aircraft to be produced in the coming years.
In the industrial field, the situation is difficult. Airbus assembled and delivered 24 aircraft (18 A 320neo, 2 A 220 and 4 A 350). It is ten more than in April, but compared to May 2019 and its 81 deliveries, the decline is brutal. In five months, the aircraft manufacturer delivered 259 aircraft to its customers, compared to 313 over the same period a year earlier.
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The significant drop in deliveries augurs well for a sharp drop in the turnover (and profitability) of Airbus commercial aviation in the second quarter of 2020. It is indeed during delivery that companies settle between 70 and 80% of the price of aircraft ordered years ago.
In order to adapt to new market conditions, Guillaume Faury, Executive Chairman of Airbus, has initiated a reduction of one third of production. This while before the Covid-19 crisis, the manufacturer was engaged in a ramp up. Airbus is caught in the rear, dragging in its wake its subcontractors who are suffering the full force of this sharp drop in load.
While the air traffic crisis is set to last between three and five years, according to estimates by Airbus and Boeing, the public authorities have worked on a plan to support the aeronautical sector. Its various components are to be revealed at the beginning of next week.
