Today Airbus revealed its full-year results for the 2020 financial year. As expected, the results were worse than the previous year, primarily driven by the COVID-19 pandemic. However, the manufacturer still has a net cash position of €4.3 billion ($5.2 billion).
As one of the major aerospace manufacturers, Airbus’ results are always keenly awaited by the industry, especially the full-year results. Indeed, it was at the manufacturer’s results presentation in February 2020 where we learned that production of the Airbus A380 would end as a result of less than expected orders. This year the manufacturer recorded a cost of €385 million ($464 million) related to the Airbus A380 program.
Lower deliveries and even worse orders
It was no secret that airlines were looking to put off their aircraft commitments last year. With the impact of the COVID-19 pandemic, many airlines weren’t flying the planes that they had. Why would they take even more aircraft not to fly them?
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Across 2020, Airbus delivered 566 aircraft, down from 863 in 2019, and its worst result in recent years. Around half of the aircraft that were delivered came during the fourth quarter. New commercial aircraft orders fell by even more than deliveries. Through the year, Airbus clocked 268 net commercial orders, down from 768 in 2019.
What about the money?
As far as money goes, there are a few key points to look at. The manufacturer’s consolidated order book is currently valued at €373 billion ($449 billion), compared to €471 billion ($567 billion) in 2019.
Across the entire business, including the manufacturer’s helicopter, military, and space arms, Airbus posted revenue of €50 billion ($60 billion), a 29% decrease year on year from 2019. As a result, it posted a net loss of €1.133 billion ($1.365 billion). Interestingly, despite all the aviation industry’s challenges, this was an improvement on the net loss reported for 2019.
Net cash position falls
As mentioned above, Airbus has a net-cash position of €4.3 billion. This had fallen by 66% from 2019 when it clocked in at €12.534 billion ($15 billion). Across the company, there were 131,349 employees in 2020, a fall of just 3% from 2019.
Commenting on the results, Airbus Chief Executive Officer Guillaume Faury said the following in a press conference:
“The 2020 results demonstrate the resilience of Airbus in the most challenging crisis to hit the aerospace industry… Many uncertainties remain for our industry in 2021 as the pandemic continues to impact lives, economies and societies… Over the longer term, our ambition is to lead the development of a sustainable global aerospace industry.”
Unlike two years ago, it seems that Airbus hasn’t revealed any major commercial aircraft news, such as the end of a product line. However, it is yet to hold its press call on the subject. Stay tuned to Simple Flying throughout the morning for any may stories that may come from the manufacturer.
What do you make of Airbus’ 2020 financial results? Let us know what you think and why in the comments!