Airbus reports net loss of 1.36bn euros for a year ago

Airbus A400M

Airbus A400M

European aircraft manufacturer Airbus on Thursday reported billions in losses for 2019 after being hit with heavy fines related to corruption and bribery allegations. The year of loss was also marked with the settlement of $4 billion with prosecutors, over the charges of corrupt practices.

Revenues increased by 10.7 percent to 70.48 billion euros, "mainly driven by the higher commercial aircraft deliveries and a favourable mix at Airbus, and to a lesser extent the favourable exchange rate development".

Airbus turned in a "strong underlying financial performance driven mainly by our commercial aircraft deliveries", chief executive Guillaume Faury said in the company statement.

Airbus saw deliveries of 863 commercial aircraft, up from 800 in the year before. Airbus shares were up 0.8% at 0908 GMT.

The company boosted orders to 768 as competitor Boeing stumbled because of the grounding of its 737 MAX jet after two crashes that killed 346 people. Currently, the plant produces roughly six planes a month.

The group also announced a deal to buy Canadian group Bombardier's (BBDb.TO) remaining stake in the A220 jet program, part of a market for smaller passenger planes shaping up to be another major battleground with Boeing.

Faced with the danger caused by the outbreak of coronavirus in China, which has sent rippling effect in the entire airline industry, and the global economy as a whole, Airbus maintains its tone, assuring that the impact on the company would not be a substantial one, contrary to many beliefs.

Adjusted operating income, excluding the charges and other one-offs, was 6.95 billion euros in 2019, up from 5.38 billion euros recorded a year earlier, the company said. It's targeting free cash flow of 4 billion euros ($4.3 billion), a 500-million-euro increase.

Airbus SE released its fourth-quarter and 2019 results on Thursday morning. The group said it expected about 2 billion euros in further related losses by mid-decade.

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