Airbus SE stemmed an outflow of cash in the third quarter as it learned to navigate an industry reeling from the pandemic, but also said the aviation market’s recovery would start later than initially forecast.
The world’s largest plane maker posted a positive free cash flow of €600 million, equivalent to $705 million, as it started delivering more planes. Amid a sudden drop in traveler demand, airlines have moved to delay, defer or cancel orders for new jets. Airbus and rival Boeing Co. have reduced production levels to adjust.
However, Airbus was making more planes than it could deliver, hitting cash flow, as airlines typically pay most of the cost of a new jet upon delivery. Airbus still has finished planes awaiting delivery, but the company was able to reduce the number by around 10 aircraft to 135.
Airbus burned through €4.4 billion in each of the first two quarters of the year. It set a target for free cash flow to be at least break even in the fourth quarter, its first guidance since the start of the pandemic.
The European plane maker posted Thursday a net loss of €767 million for the third quarter, compared with a profit of €989 million a year earlier. Revenue fell 27% to €11.2 billion.
