Airbus, the European plane maker announced on Tuesday that it is hopeful to reach cash break-even in the current quarter, giving the first hint to the investors about their future performance. The company suffered hard due to the current pandemic and had to take measures to stop the cash outflows in the third quarter.
The Company revenue fell to 27% to 11.2 billion euros and a 49% drop was recorded in adjusted operating profit compared to last year. According to analysts, adjusted operating profit would be 708 million euros on the revenue of 11.43 billion euros.
Airbus announced new restrictions in his factories in France and inGermany to reduce the recrudescence of the COVID-19 epidemic to reduce the gap between production and deliveries off planes. There is a backlog of 145 aircraft which have been postponed by the airlines due to the current situation. By the end of September, the number has reduced to 135 planes.
The company has managed the deliveries by making storage agreements with the airlines which are unable to receive the order due to the pandemic. But the 2nd wave of the Coronavirus has raised questions about the delivery of the jets.
The company is in discussion with the unions to cut 15,000 more jobs and they are hopeful about the outcome of the discussion. The CEO of the company Guillaume Faury, already warned his staff about the job cuts, last month, due to failed recovery of air travel.
Airbus is trying to negotiate with its rival, Boeing and the U.S over the aircraft subsidies. The company wants to reset terms and conditions of French and Spanish government loans which cost 236 million euros to the company. WTO declared these loans illegal which result in U.S tariff on European goods to the U.S. The European Union also react this week and put its tariff on U.S. goods.