PARIS: Europe’s Airbus announced a new cut in production of its marquee A350 jet yesterday as it swung to a larger-than-expected second-quarter loss in the face of the global pandemic.
But boosting its shares, the planemaker also said it hoped to avoid consuming cash in the second half of the year after a smaller-than-expected second-quarter outflow of 4.4 billion euros as deliveries tumbled due to the coronavirus crisis.
“We believe it is going to be a long and slow recovery,” chief executive Guillaume Faury told reporters, adding that travel was picking up but more slowly than previously expected.
The crisis has particularly affected demand for wide-body long-haul jets, which are expected to be the slowest to recover once demand returns to normal levels, which Airbus says could take until 2023 or 2025.
Airbus said it had cut wide-body A350 production to five jets a month, after dropping it to six from 9.5 in April.
The move came a day after US rival Boeing announced further cuts in output of 787 and 777 jets, which compete with the A350 on depressed long-haul networks.
Airbus is shedding up to 15,000 jobs or 11 per cent of its workforce to cope with the crisis, which it expects to hold output down by 40pc for some two years compared with pre-crisis levels.
Shares in Airbus rose by 3.6pc in morning trading. Airbus posted an adjusted second-quarter operating loss of 1.226bn euros ($1.44bn) as revenues slid 55pc to 8.317bn. Analysts saw a loss of 1.027bn on revenues of 8.552bn, according to a company-compiled consensus.