Dhe Corona crisis caused the world’s two largest aviation and defense companies, Airbus and Boeing, to slide deep into the red in the second quarter. The bottom line at Airbus was a loss of more than 1.4 billion euros. In the same quarter of the previous year, the group had posted a profit of 1.2 billion euros.
The American competitors had been hit even worse: a loss of around $ 2.4 billion (a good two billion euros) – an improvement compared to the previous year. The “Jumbo” group had incurred a record loss of $ 2.9 billion due to the unfortunate 737 Max.
Anyone who is still a shareholder in the two groups must first take a deep breath. Hardly any other industry has been hit as hard by the corona pandemic as the aviation industry. And hardly any other industry will have to deal with the effects longer.
Bye bye, jumbo!
Both companies are fighting. Thousands of layoffs, productions are being cut and the days of superlatives in the sky seem to be over. Boeing will no longer build what was once the world’s largest passenger aircraft after more than five decades. Bye bye, Jumbojet Boeing 747. The last one will be built in 2022. The Americans say the demand is too low.
Boeing currently has only a dozen orders for the Model 747 as a freighter. Most recently, only six copies were made each year. Since Airbus announced in early 2019 that it would cease production of its giant A380, there will be no new kings of the sky in the future.
Airbus once took off with the double-decker Airbus A380 to replace the jumbo as the world’s largest passenger aircraft and to score especially with the major airlines such as Deutsche Lufthansa. The plan is a thing of the past. Instead, the Europeans want to cut production of the latest long-haul A350 even more than planned.
However, there is hope at Boeing due to the important model 737 Max, which due to two crashes with a total of 346 deaths has not been allowed to start for over a year and cannot be delivered to customers. The group is now hoping for the green light from the US aviation authority for a re-registration. The timing for this couldn’t be worse – in the middle of the biggest crisis in the industry. A great demand for the plane appears to be unrealistic, many orders are uncertain.
However, the well-being of Boeing and Airbus will not depend solely on models such as the 737 Max or the competitor model of the Airbus A320. It will be exciting to see how, above all, everyday business life will change after Corona, or not.
Video conferences are currently the order of the day instead of jetting around the world. The consequence: airplanes remain empty, airlines cancel flights or even cease operations, and airplanes remain on the ground in large numbers. There are no new ones planned at all.