AIR Airbus SE

- Airbus adjusted EBIT fell by 49% in its first quarter

- The aerospace giant has burned roughly EUR8 billion in cash during the period

- It should maintain its production rate until June

By Olivia Bugault

Airbus SE swung to a net loss in its first quarter, while revenue fell sharply, as the European jet maker faces a sharp decline in demand world-wide, triggered by the coronavirus pandemic.

Net loss was 481 million euros ($520.45 million), compared with a net profit of EUR40 million a year earlier, while revenue fell 15% at EUR10.63 billion.

Analysts were expecting sales to come in at EUR10.65 billion, according to a consensus estimate provided by FactSet. The decline is mainly due to commercial jets that have not been delivered during the period because of the pandemic.

Airbus's more closely watched adjusted earnings before interest and taxes metric plunged 49% to EUR281 million.

Airbus reported negative free cash before merger and acquisition and customer financing of EUR8.03 billion.

The outflow includes a EUR3.6 billion fine that is part of a bribery case settlement. Preserving cash remains one the company's main priorities. However, Airbus should not need government support, its chief financial officer Dominik Asam said during a conference call Wednesday.

Airbus Chief Executive Guillaume Faury warned its employees last week that the company is "bleeding cash at an unprecedented rate," adding that additional measures could be needed to ensure Airbus's survival.

"We are now in the midst of the gravest crisis the aerospace industry has ever known," Mr. Faury said.

Earlier this month, Airbus slashed its production rate by about a third after booking only 21 net orders for jets and delivering 36 aircraft in March. Airbus has received many requests from airlines asking to defer orders, which is its biggest issue for the moment, its Mr. Faury said.

Despite numerous requests for deferrals, Airbus is not planning to slash its production rate further at least until June and, if another cut is necessary, it would be smaller than the previous one, Mr. Faury said during the call.

The Toulouse, France-based company said that it won't issue a new guidance for the year as the visibility is still too low. Airbus previously withdrew its 2020 outlook and scrapped its 2019 dividend proposal of EUR1.80 per share on the back of the virus.

Write to Olivia Bugault at olivia.bugault@wsj.com

(END) Dow Jones Newswires

April 29, 2020 03:39 ET (07:39 GMT)

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