Airbus reports 2019 net loss of €1.36bn

Daniel Fowler
February 14, 2020

France-based European plane maker Airbus on Thursday reported a net loss of 1.36 billion euros (1.47 billion US dollars) in 2019 after paying billions of euros of provision to settle a past bribery and corruption case related to jetliner sales. The year of loss was also marked with the settlement of $4 billion with prosecutors, over the charges of corrupt practices.

Net loss for Airbus in the past year amounted to 1.36 billion euros compared to a net profit of $ 3.05 billion euros in 2018.

Airbus's Revenue past year rose 11% to 70,478 billion euros.

Airbus is well placed to benefit from the crisis surrounding arch-rival Boeing's (BA.N) 737 MAX airliner, grounded since last March after two deadly crashes. "We delivered a strong underlying financial performance driven mainly by our commercial aircraft deliveries", said Airbus Chief Executive Officer Guillaume Faury. While the year was a record-breaking one for the European conglomerate in terms of aircraft deliveries and orders, the manufacturer had to take several charges throughout the year, which put the final line in the company's financial statement in the red.

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Nonetheless, Faury acknowledged some Chinese airlines had requested "very short-term" postponements of new jet deliveries that he described as logistical. Here Airbus is struggling with a German export ban on exports to Saudi Arabia.

Airbus also announced that it would buy out the Canadian Bombardier in the program for the regional A220 aircraft. It's targeting free cash flow of 4 billion euros ($4.3 billion), a 500-million-euro increase.

For the fourth quarter, adjusted operating income fell 9 per cent to €2.8 billion, ahead of the €2.74 billion expected by analysts, according to an Airbus consensus poll.

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