rain.png
Wednesday May 12th, 2021 8:01AM

Airbus lost $1.3 billion amid pandemic; expects better 2021

By The Associated Press
Related Articles
  Contact Editor

PARIS (AP) — European plane maker Airbus lost 1.1 billion euros ($1.3 billion) last year amid an unprecedented global slump in air travel because of the pandemic, but expects to deliver hundreds of planes and make a profit in 2021 despite uncertainty about when people will resume flying en masse.

Airbus is also pushing to negotiate a “cease-fire” soon in its years-long trade dispute with U.S. rival Boeing, amid hopes that the Biden Administration will be more amenable than Trump's government to a deal. The dispute has led to billions of dollars in tit-for-tat cross-Atlantic tariffs on planes, cheese, wine, video games and other products.

Airbus CEO Guillaume Faury acknowledged Thursday that the company’s performance last year was “far from expectations” and had to constantly adapt as airlines grounded planes — or folded altogether — because of travel restrictions. Airbus announced in June that it would cut 15,000 jobs, mostly in France and Germany.

“The crisis is not over. It is likely to continue to be our reality throughout the year,” Faury said. “Airlines will continue to suffer” and to “burn cash,” he warned.

Airbus doesn’t expect the industry to recover to pre-pandemic levels until 2023-2025, and when it does, Airbus predicts that environmental concerns will be ever more important to passengers and airlines, so it's increasing investment in hydrogen and lower-emissions aircraft.

Airbus sales were down to 49.9 billion euros from 70 billion euros the year before. The company also reported a loss in 2019 because of a major multinational corruption settlement.

Airbus delivered 566 aircraft last year and expects to deliver about the same number this year, the company said. It took in 268 commercial plane orders, down from 768 the year before.

Both figures were well down from normal recent years, but above those from struggling Boeing.

Boeing Co. got a bump in orders and deliveries of new planes in December, but it wasn’t enough to salvage the year. It notably suffered from continuing cancellations of its 737 Max jet, which was grounded for 21 months after crashes in Indonesia and Ethiopia killed 346 people.

With both plane makers facing a long and difficult recovery, the Airbus chief executive called the U.S.-EU tariffs a “lose-lose situation” for everyone. The tariffs stem from a dispute over state subsidies to both Airbus and Boeing that each side calls unfair.

After trade tensions worsened under Trump's presidency, Faury said, “We believe the situation is in place to start with a cease-fire, to suspend tariffs, to hold negotiations and move forward."

Airbus welcomed one bit of good news last year: a negotiated agreement between Britain and the EU to reduce trade disruptions after Brexit was finalized Dec. 31. Faury insisted Thursday that Airbus' U.K. plants “have a very, very important role to play moving forward for Airbus.”

Overall, however, the outlook remains bleak for the aviation industry.

Also Thursday, Air France-KLM announced it plunged to a 7.1 billion euro ($8.5 billion) loss in 2020, as travel restrictions and worries caused a 67% fall in passenger numbers at the French-Dutch airline. CEO Ben Smith said the carriers now are looking for an improvement in 2021 “as soon as vaccination is deployed on a large scale and borders once again reopen.”

___

Mike Corder in The Hague, Netherlands, contributed.

___

Follow all AP stories on the coronavirus pandemic at https://apnews.com/hub/coronavirus-pandemic.

  • Associated Categories: Associated Press (AP), AP World News, AP Business, AP Business - Corporate News
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Airbus lost $1.3 billion amid pandemic; expects better 2021
European plane maker Airbus lost more than $1.3 billion in 2020 amid an unprecedented global slump in air travel because of the pandemic
2:18AM ( 15 minutes ago )
'Horrible': Witnesses recall massacre in Ethiopian holy city
Bodies with gunshot wounds lay in the streets for days in Ethiopia’s holiest city
2:16AM ( 17 minutes ago )
Australian media law raises questions about 'pay for clicks'
Sir Timothy Berners-Lee, the British computer scientist known as the inventor of the World Wide Web, worries that Australian plans to make digital giants pay for journalism could set a precedent that renders the Internet as we know it unworkable
2:11AM ( 23 minutes ago )
Associated Press (AP)
Asian shares mostly lower after mixed day on Wall Street
Shares are mostly lower in Asia after a mixed session on Wall Street as losses by technology and industrial companies offset other gains
12:08AM ( 2 hours ago )
Malaysia ex-PM's wife ordered to make defense in graft trial
A Malaysian court has ordered the wife of ex-Prime Minister Najib Razak to enter her defense in a corruption trial linked to a $310 million solar energy project
10:13PM ( 4 hours ago )
US needs to brace itself for more deadly storms, experts say
The deadly winter storms that knocked out power for millions in Texas and other states have exceeded the worst-case scenarios of many U.S. utilities
9:58PM ( 4 hours ago )
AP Business
'Horrible': Witnesses recall massacre in Ethiopian holy city
Bodies with gunshot wounds lay in the streets for days in Ethiopia’s holiest city
2:16AM ( 17 minutes ago )
Australian media law raises questions about 'pay for clicks'
Sir Timothy Berners-Lee, the British computer scientist known as the inventor of the World Wide Web, worries that Australian plans to make digital giants pay for journalism could set a precedent that renders the Internet as we know it unworkable
2:11AM ( 23 minutes ago )
The Latest: Brady tops Muchova, reaches 1st Grand Slam final
Jennifer Brady has claimed an epic, 18-point last game to beat Karolina Muchova in three sets at the Australian Open and reach her first Grand Slam final
1:58AM ( 35 minutes ago )
Seiko Hashimoto takes over as Tokyo Olympic president
A woman has been named president of the Tokyo Olympic organizing committee
1:55AM ( 38 minutes ago )
Killings surge in Syria camp housing Islamic State families
Killings have surged inside the camp in northeast Syria housing families of Islamic State group members
1:08AM ( 1 hour ago )