Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Euronext Paris  >  Airbus SE    AIR   NL0000235190


SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Exclusive: Airbus holds jet output stable in face of crisis warnings - sources

share with twitter share with LinkedIn share with facebook
09/24/2020 | 10:24pm EDT
FILE PHOTO: A GoAir Airbus A320neo passenger aircraft is parked at the Airbus factory in Blagnac near Toulouse

Airbus is set to reaffirm its aircraft production rates, despite warnings that the coronavirus crisis will be deeper and longer than expected, industry sources told Reuters on Thursday.

After cutting output of its best-selling A320neo single-aisle jet at the start of the crisis, the European planemaker has subjected its targets to a fresh internal review as a second wave of COVID-19 prompts new government restrictions in Europe.

But although it weighed further trimming its monthly output of 40 A320neos, down from 60 before the crisis, this week's review determined Airbus will hold the line on output for now.

"There are no signs of slowing; the contrary in fact," a senior industry source said of the A320neo output.

Airbus declined to comment.

The decision is good news for hundreds of suppliers at risk from volatility in output rates. But it puts pressure on Airbus to keep up deliveries and find homes for some 170 jets already waiting for ailing airlines to collect them.

In a letter to staff last week, Airbus Chief Executive Guillaume Faury warned the crisis was deepening.

Falling demand, combined with billions of dollars of cash tied up in undelivered jets, has prompted a debate on whether to trim production rates by a handful of jets per month.

Although Airbus has expressed confidence in its goals, it had left itself some flexibility after telling staff in May it could make fresh cuts to tackle a second wave.


Contributing to pressure for a new cut, around 30 of the jets due in 2021 belong to lessors who have yet to find an airline able to take them, Ascend by Cirium data shows.

Several others do have a home, but questions remain over whether their designated operators will survive the winter.

Airbus has used a mixture of negotiations and legal warnings to keep deliveries relatively buoyant since the crisis began, but those tactics are running their course as airlines face a tough winter without the reserves generated in a normal summer.

"Production rates are too high," another senior source said.

Arguments against cutting reflect the stakes involved when jetmakers adjust an already fragile manufacturing base.

The fear is that an order to speed or slow down, even by a few jets a month, could send a whipsaw effect through the supply chain violent enough to drive some small firms out of business.

Airbus also wants to keep its production system in shape to respond whenever the crisis ends, although there is little relief for wide-body output which has already been revised downwards.

Jet traders say the acid test for Airbus' bid to stabilise output will be whether the majority of cash-starved airlines will be able to find financing for next year's deliveries.

Funds are slowly returning for airlines with the strongest finances, but many airlines are struggling to find support and are seen likely to draw on European government export credits.

By Tim Hepher

share with twitter share with LinkedIn share with facebook
All news about AIRBUS SE
05:10pAIRBUS TELLS SUPPLIERS : plan now for post-crisis output hike
02:15pAIRBUS : delivers its first U.S.-assembled A220 from Mobile, Alabama
01:29pU.S. airlines lay out COVID-19 damage and renew calls for aid
01:29pU.S. airlines lay out COVID-19 damage and renew calls for aid
04:20aAIRBUS : SPAINSAT NG programme successfully passes Preliminary Design Review (PD..
04:20aAIRBUS : The SPAINSAT NG programme, owned and operated by Hisdesat, has successf..
10/21AIRBUS : The European Border and Coast Guard Agency (Frontex) awarded a contract..
10/21Industrials Down After Beige Book Survey -- Industrials Roundup
10/21AIRBUS : Gets a Neutral rating from Morgan Stanley
10/21Cathay Pacific Chairman Says Delivery Of Boeing 777-9 Fleet Postponed Beyond ..
More news
Sales 2020 46 739 M 55 230 M 55 230 M
Net income 2020 -475 M -561 M -561 M
Net Debt 2020 805 M 952 M 952 M
P/E ratio 2020 -108x
Yield 2020 0,01%
Capitalization 50 475 M 59 713 M 59 645 M
EV / Sales 2020 1,10x
EV / Sales 2021 0,93x
Nbr of Employees 135 154
Free-Float 74,0%
Duration : Period :
Airbus SE Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends AIRBUS SE
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 24
Average target price 81,32 €
Last Close Price 64,45 €
Spread / Highest target 90,8%
Spread / Average Target 26,2%
Spread / Lowest Target -44,0%
EPS Revisions
Guillaume Faury Chief Executive Officer
René Richard Obermann Chairman
Michael Schöllhorn Chief Operating Officer
Dominik Asam Chief Financial Officer
Luc Hennekens Chief Information Officer
Sector and Competitors
1st jan.Capitalization (M$)
AIRBUS SE-50.90%59 542
TEXTRON INC.-21.57%7 874
AVICOPTER PLC12.83%4 768