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Airbus Reports 2019 Growth But Scores Net Loss

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Airbus Reports 2019 Growth But Scores Net Loss

Airbus Reports 2019 Growth But Scores Net Loss
February 14
10:26 2020

MIAMI — The Toulouse-based aerospace giant, Airbus, presented its 2019 full-year (FY) financial report, wielding overall good results for the though a financial net loss.

The highlights of the results show a record number of deliveries, a strong order book, and a number of significant orders throughout the year, manifesting a credible fiscal performance.

However, the numbers show a loss due to adjustments made for the much hushed up bribery scandal, which forced Airbus to pay a hefty €3.6bn fine.

JAL A350 Delivery Flight
JAL A350 Delivery Flight

Delivering 863 aircraft and netting 768 orders gives Airbus one of its best performance records in history. The bulk of the deliveries were for aircraft in the A320neo family with 551 deliveries.

The weakest performing family was the A380, with just eight frames delivered. This does tie in with the announcement that the production of the behemoth stable was to cease in the first half of this decade.

The order book currently stands at 7,400 airframes, with the 768 orders gained during the year, coming to a net revenue gain to 58% in 2018 for a net total of €65,759 million.

Airbus Helicopters saw fewer units ordered, 310 in 2019 versus 381 in 2018, showing a 19% decline year on year. However, order intake revenues were up 13% at 7,179 million euros compared to the previous year.

Airbus did report a loss for the whole of 2019, despite a year-end consolidated revenue standing at €70,478 million. The net loss: -€1,362 million.

This has also resulted in the share price taking a substantial hit, down €1.75 on the 2018 earnings per share of €3.94.

Airbus A330 Super Transporter received certification in 2019.
Airbus A330 Super Transporter received certification in 2019.

The Board of Directors will propose a dividend payment of €1.80 per share in the 2020 Annual General Meeting.

Airbus CEO, Guillaume Faury, declared, “We achieved a great deal in 2019. We delivered a strong underlying financial performance driven mainly by our commercial aircraft deliveries.”

“The reported earnings also reflect the final agreements with the authorities, resolving the compliance investigations and a charge related to revised export assumptions for the A400M. The level of confidence in our ability to continue to deliver sustainable growth going forward has led to a dividend proposal of € 1.80 per share,” said the CEO.

“Our focus in 2020 will be on reinforcing our company culture, improving operationally, and adjusting our cost structure to strengthen financial performance and prepare for the future,” concluded Faury.

2020 is fast proving to be a challenging year for the aviation industry, with several high profile incidents, the outbreak of Coronavirus and the substantial effect it has had on the demand for the Chinese markets.

Whilst the 2019 financial performance is solid, the challenges to be faced in 2020 will require strength and resilience; however, with a gross cash position of €22.7 billion, I think Airbus will indeed ride out the storm very smoothly.

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Ryan Taylor

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