French aircraft manufacturer Airbus said Thursday that it expects to break even in the fourth quarter. The European aircraft manufacturer, which is cutting jobs to cope with slumping air travel demand, also incurred € 1.2 billion in restructuring costs, which resulted in losses despite a higher-than-expected underlying operating profit. p>
Underlying or adjusted operating profit of € 820 million was down 49% year-on-year, while revenues fell 27% to € 11.2 billion.
According to the company's consensus forecast, analysts were expecting quarterly adjusted operating income of € 708 million on revenues of € 11.439 billion.
Airbus said it curbed cash outflows in the third quarter as it narrowed the gap between production and supply for airlines, which narrowed sharply at the start of the crisis.
However, the announcement came when France and Germany, where Airbus' main factories are located, announced new restrictions to try to contain the resumption of the COVID-19 epidemic.
The company said its restructuring plans may need to be revisited depending on ongoing negotiations with unions to cut 15,000 jobs, although it says they have “made good progress.”
CEO Guillaume Faury warned staff last month that the cuts could include the first mandatory layoffs at Airbus, as air travel has not recovered as quickly as expected.