British engineering company Meggitt on Thursday estimated a roughly 15% drop in first-half organic sales as demand from planemakers dried up due to a halt in global air travel from restrictions to contain the novel coronavirus.
The company, which makes parts used in planes, said revenue from its civil aerospace business is expected to decline about 30% in the first half, following a roughly 50% fall in the second quarter.
Planemakers Airbus and Boeing have either suspended or cut production as airlines facing cash crunch are unable to take deliveries.
Meggitt said its defence business continued to perform well but gains would be offset by the declines in its civil aerospace and energy units.
The civil sector accounted for 54% of total sales in 2019, while defence made up 36%.
The Coventry-based company has been on a cost-cutting drive to shore cash and cope with the pandemic. The company said in April it would axe about 1,800 jobs or roughly 15% of workforce and sold a U.S. unit this week for $146 million to focus on key markets.
The company said the workforce reduction was on track as planned, but warned there would be "significant free cash outflow" in the first half.
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Sriraj Kalluvila)
