Airbus lost 1,133 million euros last year, shaken by the crisis of coronavirus which is particularly affecting the aviation sector, although that result was less bad than the negative 1,362 million euros in 2019 due to various exceptional provisions.
The European group’s losses in 2020 include, in particular, a negative financial result of 620 million euros, as well as the costs of a loan from OneWeb, the company explained in a statement Thursday.
The net operating result (Ebit) also presented a negative balance of 510 million euros last year, compared to the 1,339 million positive the previous year.
The Ebit reflects the evolution of the different businesses of the group. In the commercial aircraft division, which is by far the most important, fell to the red with 1,330 million euros, compared to the positive 1,794 million in 2019.
In defense and space, it rose to 408 million euros in 2020 after having suffered a net operating result of -881 million the previous year; and in helicopters it rose 10% to 455 million.
Something similar happened with turnover, which overall fell by 29% up to 49,912 million euros. In commercial aircraft, revenues plunged 37% to 34.25 billion euros. The fall was very limited in defense and space activity (-4% to 10,446 million euros) and in helicopters the turnover even increased by 4% to 6,251 million.
The explanation for all this is, in the first place, that as a result of the stoppage of the entire air sector due to the coronavirus, its aircraft deliveries were down 34% to 566 units. The net orders obtained further decreased, remaining at 268 aircraft, compared to 768 in 2019.
The helicopter business was supported by a series of government orders and the defense one in a very special way because Germany signed in November the purchase of 38 Eurofighter fighters.
The commercial situation is reflected in the value that Airbus attributes to its pending orders, which as of December 31 was 373,000 million euros, compared with 471,000 million a year earlier.
In this change, the fact that the new aircraft orders were in 2020 much lower than those of deliveries, but also to the dollar depreciation (It is the currency in which almost all the transactions in the sector are made) with respect to the single European currency and the revaluation of the entire portfolio under the new circumstances.
Unlike what had happened in previous years, Airbus did not consider it necessary to establish a new provision for its A400M military transport aircraft, which is assembled in Seville.
Nor does he consider it appropriate for the time production and staffing adjustments, like those he had to announce last spring after the outbreak of the coronavirus crisis.
In any case, Airbus warned that “given the global business environment”, this year it will not pay dividends, a decision that justifies to strengthen the financial resilience of the company by avoiding cash outflow and “support its ability to adapt as it evolves. the situation”.
Regarding the outlook, and based on the assumption that there will be no new disruptions neither in the global economy, nor in air traffic, nor in its internal operations, its objective for 2021 is to deliver the same number of commercial aircraft as in 2020 and an adjusted net income of € 2 billion.
That is, above the 1,706 million euros last year, but well below the 6,946 million obtained in 2019.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.