Airbus follows Boeing in paring output to weather longer slump
Airbus cut back wide-body jet production after it burned through E4.4b in Q2, in a further retrenchment meant to safeguard cash while it waits out a collapse in demand. Airbus will now aim to produce five A350 aircraft a month rather than the six targeted in April, the world’s biggest planemaker said Thursday. With global fleets largely grounded during the second quarter, Airbus delivered one-third the number of planes it did a year earlier. The company is clamping down on costs with the aim of halting cash outflows in H2, as it braces for a depressed travel market that could last for several years. “We believe it’s going to be a long and slow recovery,” CEO Guillaume Faury said on a conference call. “We’re trying to take a balanced view on this and not be too pessimistic.” Air travel is reeling from its biggest-ever slump after the pandemic brought decades of growth to a shuddering halt. That’s left Faury walking a tightrope as he seeks to hold down spending without doing permanent damage to the system of suppliers and skilled workers on which Airbus will rely when better times return. Prospects for a quick rebound are meanwhile receding as new flareups of the virus lead to the reimposition of curbs on flights.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-07-31/general/airbus-follows-boeing-in-paring-output-to-weather-longer-slump
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Airbus follows Boeing in paring output to weather longer slump
Airbus cut back wide-body jet production after it burned through E4.4b in Q2, in a further retrenchment meant to safeguard cash while it waits out a collapse in demand. Airbus will now aim to produce five A350 aircraft a month rather than the six targeted in April, the world’s biggest planemaker said Thursday. With global fleets largely grounded during the second quarter, Airbus delivered one-third the number of planes it did a year earlier. The company is clamping down on costs with the aim of halting cash outflows in H2, as it braces for a depressed travel market that could last for several years. “We believe it’s going to be a long and slow recovery,” CEO Guillaume Faury said on a conference call. “We’re trying to take a balanced view on this and not be too pessimistic.” Air travel is reeling from its biggest-ever slump after the pandemic brought decades of growth to a shuddering halt. That’s left Faury walking a tightrope as he seeks to hold down spending without doing permanent damage to the system of suppliers and skilled workers on which Airbus will rely when better times return. Prospects for a quick rebound are meanwhile receding as new flareups of the virus lead to the reimposition of curbs on flights.<br/>
