 | | | | | WELCOME | | | | | |
to Aero-notes 51, the Airbus newsletter dedicated to Individual Investors.
The COVID-19 triggered an unexpected and unprecedented situation for the aerospace industry and its scale required us to promptly deploy an adaptation plan to adjust our business to the new commercial aircraft environment. Early on, we took the necessary steps to navigate the crisis: we adjusted our production rate and we launched a wide range of cash containment measures and also addressed our long-term cost structure.
Despite the slower air travel recovery than anticipated, our 9m 2020 results reflect the progress made on adapting our business to this difficult market environment. We converged commercial aircraft production and deliveries in the third quarter and we stopped cash consumption. Our ability to stabilise the cash flow in the third quarter gave us enough confidence to issue a free cash flow guidance for the fourth quarter.
In November, we delivered 64 aircraft. Total number of deliveries for 2020 stands at 477 aircraft and total net orders at 297 aircraft. These past few months we have also seen some key milestones like the delivery of the 10,000th A320 MSN to Middle East Airlines, the delivery of the 1,500th A330 to Delta Air Lines and the first US-assembled A220 also delivered to Delta Air Lines.
The COVID-19 crisis is far from over and many uncertainties remain as the virus continues to circulate and travel restrictions remain in place in most regions. Nevertheless aviation connects and unites people, cultures and businesses and will continue to do so. The market will recover, it’s not a matter of if, but when it will recover. And we intend to be well positioned when it does.
We stick to our commitment with a more sustainable future. We will invest in decarbonised technologies and we will develop the first climate-neutral, zero-emission passenger aircraft, as we announced during our web-live event on the zero-emissions day.
| | | | | | Yours,
Thorsten Fischer,
Head of Airbus Investor Relations & Financial Communication | | | |
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| | | • | Global air travel recovery slower than anticipated | | | | • | Cash containment and business adaptation on track | | | | • | 9m revenues € 30.2 billion; 9m EBIT Adjusted € -0.1 billion | | | | • | 9m EBIT (reported) € -2.2 billion; 9m loss per share (reported) € -3.43 | | | | • | Restructuring provision of € -1.2 billion recognised in EBIT (reported) | | | | • | 9m free cash flow before M&A and customer financing € -11.8 billion | | | | • | Strong liquidity underpins business resilience and flexibility | | | | • | Q3 performance: convergence of production and deliveries, free cash flow before M&A and customer financing € +0.6 billion
| | | | • | Guidance issued on FCF before M&A and customer financing for fourth quarter 2020
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|  | | Airbus Nine-Month 2020 Results
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Guillaume Faury, CEO Airbus
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“After nine months of 2020 we now see the progress made on adapting our business to the new COVID-19 market environment. Despite the slower air travel recovery than anticipated, we converged commercial aircraft production and deliveries in the third quarter and we stopped cash consumption in line with our ambition. Furthermore, the restructuring provision booked shows our discussions with social partners and stakeholders have advanced well. Our ability to stabilise the cash flow in the quarter gives us confidence to issue a free cash flow guidance for the fourth quarter. "
Guillaume Faury, CEO Airbus
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Aviation: an irreplacable force for good
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| | | | Aviation, an irreplaceable force for good in the world, is today at risk as borders remain closed and influential voices in Europe call for permanent curbs on flying. Guillaume Faury, Airbus Chief Executive Officer, shares his view on why it is important to act now.
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| | Keep Trust in Air Travel
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| | | | Airbus is bringing you solutions for a safe and healthy journey so you can continue trusting in air travel, from the moment you consider boarding an aircraft to the minute you leave the airport. | | | |
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Orders and Deliveries: November 2020
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| | | | Airbus’ 2020 gross orders totalled 381 aircraft by 30th November, with net orders of 297. Airbus delivered a total of 64 aircraft in November to 31 customers. These included the first A320neo to Sky Express. Total number of deliveries for 2020 stands at 477 deliveries to 80 customers. | | | |
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| | Institutional investors survey results
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| | | | Airbus has been ranked #1 in European Aerospace and Defence sector in all 7 categories of the European Institutional Investor Awards 2020, which include Best CEO, Best CFO, Best IR Programme, Best IR Professional and Best IR Team.
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 | | Celebrating five years of production in Mobile, U.S
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| | | | In 2015, Mobile, Alabama became home to Airbus’ first U.S.-based commercial aircraft manufacturing facility. Now celebrating five years of production, it has grown from an initial workforce of around 250 staff producing A320 Family aircraft, to 1,000 employees building both the A220 and A320 aircraft families.
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| | |  | | Clean air and cabin
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| | | | Airbus has leveraged innovation for decades to design a cabin environment which is safe for passengers and crew to breathe clean air throughout their journeys. | | | |
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| | Freely flapping wing-tips on future aircraft just took a leap forward
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| | | | The AlbatrossONE demonstrator has successfully achieved a new milestone: a “gate-to-gate” demonstration with wing-tips that are 75% longer than those tested in the first phase. This latest flight test campaign proves freely flapping wing-tips can alleviate wing loads and avoid tip stall for improved aircraft performance. | | | |
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 | | Airbus selected for ESA’s new polar ice and snow topography mission
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| | | | The European Space Agency (ESA) has selected Airbus to develop and build the Copernicus polar ice and snow topography mission (CRISTAL). With two satellites the CRISTAL mission will ensure the long-term continuation of radar altimetry ice elevation and change records. | | | |
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| | | RESPONSIBILITY & SUSTAINABILITY |
| | | | | Towards the world’s first
zero-emission commercial aircraft
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| | | | Airbus has the ambition to develop the world’s first zero-emission commercial aircraft by 2035. Our ZEROe concept aircraft enable us to explore a variety of configurations and hydrogen technologies that will shape the development of our future zero-emission aircraft. | | | |
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 | | Hydrogen fuel cells, explained
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| | | | Hydrogen fuel cells are emerging as a high-potential technology that offers significant energy efficiency and decarbonisation benefits to a range of industries. In a strategic partnership with automotive systems supplier ElringKlinger, Airbus is investing to mature fuel cell propulsion systems for the aviation market. | | | |
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| | Airbus Foundation and partners deliver humanitarian aid to Beirut
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| | | | The Airbus Foundation, together with its partners Association Les Amis Du Liban-Toulouse, Centre Hospitalier Universitaire de Toulouse, the Municipal Council of Toulouse, the German Red Cross/Bayer AG and Aviation sans Frontières, sent a fully-loaded Airbus A350 XWB aircraft from Toulouse, France, to Beirut, Lebanon, with 90 cubic meter volume of humanitarian aid on board. | | | |
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