Airbus reports a net loss of 1.36 billion euros in 2019

Airbus A380 takes off for its demonstration flight at the Paris Air Show in Le Bourget airport north of Paris. Commercial airliner maker Airbus is releasing 2019 earnings on Thursday Feb. 12. (AP

Airbus pledges profit gain after bribery settlement hit

-DELIVERY GUIDANCE: Airbus expects to deliver around 880 commercial aircraft this year, 17 more than in 2019.

Despite the record-breaking results, 2019 also had a bittersweet taste to it: Airbus was forced to take $6 billion (€5.6 billion) worth of charges, including a $3.8 billion (€3.5 billion) charge related to its multi-state corruption probe truce, resulting in a $1.4 billion (€1.3 billion) net loss for the company. Revenues rose 11% to 70.5 billion euros as the company ramped up production of its A320 twinjet.

Airbus turned in a "strong underlying financial performance driven mainly by our commercial aircraft deliveries", chief executive Guillaume Faury said in the company statement. Currently, the plant produces roughly six planes a month.

As the situation in China worsens, the CEO of Airbus attributes the hold up of the delivery of new jets to the Asian markets as a logistical issue, ensuring that the deliveries will resume with a very short delay.

The virus outbreak is still "too recent to be able to understand the magnitude and the consequences", he added.

Journalists listen to Airbus CEO Guillaume Faury during Airbus annual press conference in Toulouse southwestern France Thursday Feb.13 2020. Commercial aircraft maker Airbus lost 1.36 billion euros in 2019 because of a multibillion-eur
Airbus ends 2019 with $1.4 billion loss after corruption charges

Airbus, a multinational aerospace corporation, had announced that it will be delivering more jets and profit again in 2020.

Raising its proposed dividend by 9 per cent to €1.80 per share, Airbus predicted full-year free cash flow of around €4 billion, improved from €3.51 billion in 2019.

The program delivered 14 planes in 2019, on schedule, but now faces "increasingly challenging" obstacles including repeated extensions to a German export ban on Saudi Arabia, Airbus said.

-GOOD 2019: Revenue and closely-watched adjusted earnings before interest and taxes both grew in 2019, a solid performance despite the net loss partly caused by the expected penalty payments that settle allegations of bribery in the USA, United Kingdom and France. The group said it expected about 2 billion euros in further related losses by mid-decade. Quarterly revenue rose 4% to 24.31 billion euros.

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