Airbus outlook turns sunnier as it flies back into profit

AIRBUS has returned to profit in the first half of the year and lifted its outlook as the pan-european plane maker begins to recover from the impact of coronavirus.

The company delivered 297 airliners in six months to the end of June, up 51pc on the same period a year ago, when the pandemic caused the aerospace industry to virtually shut down.

As the world adjusts to Covid-19, Airbus is now predicting that it will deliver 600 aircraft this year, up from the 566 last time round. But showing the continuing turbulence for the sector, Airbus booked only 38 net orders for new aircraft, as it received 127 cancellations during the period. The company has orders for 6,925 aircraft as of June 30, including 5,666 of the A320 family, its top-selling, single-aisle plane.

Guillaume Faury, the chief executive, said: “Although the pandemic continues, the numerous actions taken by the teams have delivered a strong first-half performance. This enables us to raise our 2021 guidance although we continue to face an unpredictable environment.”

Airbus reported a profit of €2.2bn (£1.9bn), reversing a €2bn loss a year ago, on revenues 30pc higher at €24.6bn. The company now expects an adjusted operating profit of €4bn, double the level it predicted at its first-quarter update. Cash flow expectations have been upgraded, rising to positive €2bn for the full year, against an earlier prediction it would just break even.

The results also highlighted progress on Airbus plans to cut 10pc of its workforce – or 10,000 jobs – with employee numbers down 4pc to 126,000.

Airbus’s results contrast to rival Boeing, which on Wednesday said it delivered 156 airliners in the first half, up from 70 a year ago.