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Safran, still affected by the air traffic crisis, perceives a "beginning of recovery"

2021-07-28T19:05:23.263Z

The engine manufacturer and aeronautical equipment supplier Safran indicated on Wednesday that it perceived "the start of a recovery" but saw its activity still strongly ...



The engine manufacturer and aeronautical equipment supplier Safran said Wednesday perceiving

"a beginning of recovery"

but saw its activity still strongly affected in the first half of the year by the consequences of the health crisis on air traffic.

Read also: GE Aviation and Safran launch the clean engine race

The French group recorded a net profit of 674 million euros over the first six months of the year. Its turnover, adjusted for accounting effects linked to currency hedging, stood at 6.9 billion euros, down 21.6% compared to the first half of 2020. The Covid crisis- 19 did not begin to take effect until March 2020, bringing global air traffic to a halt.

For its managing director Olivier Andriès,

“the results for the first half of 2021 remain affected by the effects of the crisis and an unfavorable basis for comparison in the first quarter”

.

"They also attest to a start of recovery in the second quarter," he

adds, quoted in the press release. Air traffic remains affected by the spread of variants and traffic restrictions. It was 60% of its 2019 level in June, according to the International Air Transport Association (Iata).

Safran noted in particular that the flight cycles of its most recent engine, the LEAP powering the Airbus A320neo and Boeing 737 MAX, had returned by mid-July to their 2019 level when they were only 56% at the end of April.

The use of CFM56 engines, equipping older and therefore more fuel-intensive planes, also increased but remained down 35% compared to 2019.

Safran confirms its outlook for 2021

Counting on a

“significant acceleration in activity in the second half of the year”

, Safran confirms its outlook for 2021, notably forecasting a fall in adjusted sales of

“2 to 4%”

, excluding currency and perimeter effects. However, he warns that

“a delay in the pace of the resumption of civil engine services activities during the second half of the year constitutes an element of risk for these prospects”

.

These services, which are very profitable for the engine manufacturer, depend on air traffic: planes fly more, companies need more spare parts and maintenance services. The propulsion activities, which provide almost half of the group's revenues, fell 19.7% in the first half, as did the Aeronautical Equipment, Defense and Aerosystems division (-18.3%) and the Interiors division. aircraft - seats, cabins, on-board entertainment - (-39.7%). The latter activity has

"probably reached its low point

,

"

says Safran.

Source: lefigaro

All business articles on 2021-07-28

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