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Europe's Airbus said on Thursday it was further cutting production of its marquee A350 jet on Thursday as it swung to a larger-than-expected second-quarter loss in the face of global pandemic.
The planemaker also said it hoped to avoid consuming cash before M&A and customer financing in the second half of the year after a quarterly outflow of 4.4 billion euros as deliveries tumbled due to the coronavirus collapse in air travel.
Airbus posted an adjusted second-quarter operating loss of 1.226 billion euros ($1.44 billion) as revenues slid 55% to 8.317 billion. Analysts were expecting a loss of 1.027 billion on revenues of 8.552 billion, according to a company-compiled consensus.
The losses include 900 million euros of balance sheet impairment charges related to the industry's worst crisis.
Airbus said it had cut A350 production to five jets a month, after bringing the monthly rate down from 9.5 to six in April.
The move came a day after US rival Boeing said it was making further cuts in output of its 787 and 777 jets, which compete with the A350 on long-haul networks.
Airlines were already facing a glut of the industry's biggest jets before the COVID-19 crisis and those models are expected to be the slowest to recover once demand returns to normal levels, which Airbus says could take until 2023 or 2025.
Passenger operations have collapsed at an unprecedented rate as the virus spreads around the world, with Delta Air Lines Inc parking more than 600 jets, cutting corporate pay by as much as 50 per cent, and scaling back its flying by more than 70% until demand begins to recover.
Revenues fell 15.2 per cent to 10.6 billion euros, reflecting a "market environment strongly impacted" by the pandemic, "particularly in commercial aircraft", Airbus said in a statement.
The company did not indicate when it first became aware of the problem, and whether it informed regulators.
Uganda Airlines has taken to the skies once more after almost two decades out of action, but flies into a crowded aviation market in Africa where carriers have the weakest finances and emptiest planes of any region in the world.
Global stocks fell on Friday, with emerging market and Asia shares hardest hit, as a recent rout in global bond markets spooked investors amid fears the heavy losses suffered could trigger distressed selling in other assets.
G20 finance ministers and central bankers were meeting on Friday to align plans to relaunch the global economy after the coronavirus pandemic and to limit the harm to the worst-off nations shut out of the race for vaccines.
Volkswagen said on Friday it made better than expected profit of 8.8 billion euros ($10.7 billion) after tax in 2020 despite the pandemic. The world’s No. 2 automaker said the rapid recovery of China,