MIAMI – Airbus CEO Guillaume Faury has warned staff of necessary job cuts in an internal letter, stating it was “unlikely that voluntary departures will be enough” to mitigate the impact of the current crisis.
Since March, French unions and the government have made efforts to avoid such compulsory layoffs. However, air travel demand for Summer has forced the company to reconsider its plans.
As a result, Faury announced that Airbus is preparing for a crisis even deeper and longer than previously suggested. The aforementioned redundancies reached up to 15,000 jobs under a voluntary departure scheme and early retirements. Now, with Faury’s statements, more job losses are expected for the remainder of 2020.
Downward Trend in Closing Aircraft Deals
Despite Airbus recording strong numbers for August, Reuters also reported that, according to industry analysts, many of its aircraft will be stored.
During the Summer season, especially in July, air traffic did not quickly take flight. For the International Air Transport Association (IATA), this situation is due to inconsistent border rules. It is harder for the industry to plan ahead with such reduced operativity.
In July, the commercial aviation industry recorded RPKs at 79.8% compared to 86.6% in June, according to an IATA report. While the numbers continued to gradually improve, the fall in industry-wide load factor for the first month of 2020 was 57.9%. Hence, the world was turned upside down, changing the key return of investment for airline revenues in their peak season.
Featured photo: Airbus CEO, Guillaume Faury. AP Photo/Claude Paris file.