PARIS - Airbus SE’s operating profit plummeted 49% to €281 million while its revenue fell 15% to €10.631 billion in the first quarter (Q1) of 2020 due to the coronavirus (COVID-19) pandemic, which prompted “gravest crisis the aerospace industry has ever known”.
The European aerospace consortium has announced plans to save cash after spending €8 billion in Q1, including a €3.6 billion fine to settle corruption investigations in France, the UK, and the US.
“All nature of costs are now being reviewed,” said Airbus CEO Guillaume Faury as quoted by Reuters, Wednesday (29/4).
Earlier this month Airbus slashed aircraft production by up to 42%, and there is possibility of the company slashing production further after reviewing the situation in June. The company will also reduce its 2020 capital expenditure by around €700 million to €1.9 billion and suspend non-essential activities, said Mr Faury.
Since the escalation of the COVID-19 pandemic Airbus has furloughed 3,000 workers in France and 3,200 in the UK. Thousands of staff in Germany, according to Mr Faury, could also be affected. (MS)