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Airbus: Aviation faces the deepest crisis in history

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Airbus boss says industry facing ‘gravest crisis’ in history Description video: The travel industry has been one of the worst hit by lockdown measures in place around the world. Airbus lost 481 million euros in the first quarter, the company’s […]

Airbus boss says industry facing ‘gravest crisis’ in history

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The travel industry has been one of the worst hit by lockdown measures in place around the world. Airbus lost 481 million euros in the first quarter, the company’s revenues down 15% with no new orders expected in the near term. \n\nSubscribe to France 24 now:\nhttp://f24.my/youtubeEN\n\nFRANCE 24 live news stream: all the latest news 24/7\nhttp://f24.my/YTliveEN\n\nVisit our website:\nhttp://www.france24.com\n\nSubscribe to our YouTube channel:\nhttp://f24.my/youtubeEN\n\nLike us on Facebook:\nhttps://www.facebook.com/FRANCE24.English\n\nFollow us on Twitter:\nhttps://twitter.com/France24_en

Airbus: Aviation faces the deepest crisis in history

Airplane maker Airbus has warned the aviation industry could take as many as five years to recover to pre-pandemic levels.

Airbus Executive Director Guillaume Faury believes the aviation industry is currently in the deepest crisis in history.

Air passenger revenues have practically disappeared. British Airways, Airbus’ largest customer, on Tuesday night announced plans to cut 12 thousand workers places – almost a third of its workforce.

Airbus: Aviation faces the deepest crisis in history

Brian Stratton, Secretary General of the British Airlines Pilots Association (Balpa), said job cuts were not expected at this stage given the uncertainty surrounding the prospects for aviation.

He also added that the lack of government support was one of the reasons for layoffs at British Airways.. Parent company International Airlines Group and other airlines such as Iberia, Vueling, Aer Lingus have yet to announce staff cuts.

In the first three months of this year, Airbus was unable to deliver more than 60 aircraft to customers due to quarantine restrictions. This number is expected to rise as airlines negotiate order delays in an attempt to ease financial pressures.

Airbus core profit fell 49% in the first quarter of this year to € 281 million, while revenues fell nearly € 2 billion to € 10.6 billion.

Airbus has already suspended payment of dividends, cut production by a third and laid off thousands of employees at some of its key sites, including more than 3 thousand employees at the Broughton plant, North Wales.

The 135-person manufacturer is also considering further job cuts to optimize costs.. The company has not yet disclosed the extent of its restructuring due to uncertainty, but notes that by June, management will have a more accurate view of the mid-term forecast..

It is worth noting that some airlines are viewing the crisis as an opportunity to accelerate the transition to newer aircraft with lower carbon emissions..