Airbus reported net loss by the end of 2019

Andrew Cummings
February 14, 2020

France-based European plane maker Airbus on Thursday reported a net loss of 1.36 billion euros (1.47 billion USA dollars) in 2019 after paying billions of euros of provision to settle a past bribery and corruption case related to jetliner sales.

A weaker sales outlook for the military transporter led to a 1.21 billion euro charge and will continue to weigh in coming years, Airbus said on Thursday.

The Toulouse-based manufacturer reported a net loss of €1.36 billion ($1.49 billion) for the 2019 fiscal year.

Airbus turned in a "strong underlying financial performance driven mainly by our commercial aircraft deliveries", chief executive Guillaume Faury said in the company statement.

In 2020, Airbus targets around 880 commercial aircraft deliveries and aims to accelerate its operating income to 7.5 billion euros.

Airbus plans to increase production of its bestselling A320neo jets - which directly compete with Boeing's grounded 737 MAX - to as much as 67/month by 2023 from its current goal of 63/month in 2021. That follows a 55 percent jump previous year, when Boeing rose just 1 percent after two fatal crashes involving the 737 MAX tipped the United States company into crisis.

As the situation in China worsens, the CEO of Airbus attributes the hold up of the delivery of new jets to the Asian markets as a logistical issue, ensuring that the deliveries will resume with a very short delay.

The company also lost 1.2 billion euros (£1 billion) because of troubles with its A400M military transport programme and 221 million euros (185 million) because the German government suspended export licences to Saudi Arabia through March.

Airbus also announced that it would buy out the Canadian Bombardier in the program for the regional A220 aircraft.

For the fourth quarter, adjusted operating income fell 9% to 2.81 billion euros, ahead of the 2.74 billion expected by analysts, according to an Airbus poll.

Other reports by iNewsToday