“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,” said Airbus Chief Executive Officer Guillaume Faury. “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.”

Net commercial aircraft orders totalled 300 (9m 2019: 127 aircraft) with the order backlog comprising 7,441 commercial aircraft as of 30 September 2020. Airbus Helicopters booked 143 net orders (9m 2019: 173 units), including 8 H160s and 1 H215 during the third quarter. Airbus Defence and Space’s order intake increased to € 8.2 billion, with the third quarter including an additional A330 MRTT as well as contract wins in telecommunications satellites.

Airbus shares fluctuated as concerns about the pandemic vied for attention alongside upbeat cash guidance and better-than-expected core operating profit, which excluded a 1.2 billion euro restructuring charge.

By mid-morning they were down 1.5% after rising 2.5%.

Underlying third-quarter operating profit fell 49% to 820 million euros as revenue fell 27% to 11.2 billion, beating market forecasts on profit but falling short on revenue.

Addressing concerns of investors across the aerospace industry, the focus of the quarterly update was on efforts to preserve cash, which depend heavily on aircraft deliveries.

Release Airbus
Photo Rob Vogelaar