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Airbus to bolster liquidity in response to COVID-19

AMSTERDAM, March 23, 2020

Airbus has announced measures to bolster its liquidity and balance sheet in response to the COVID-19 pandemic as it continues to assess the ongoing situation and the impact on its business, customers, suppliers and the industry as a whole.  

“Our first priority is protecting people while supporting efforts globally to curb the spread of the coronavirus. We are also safeguarding our business to protect the future of Airbus and to ensure we can return to efficient operations once the situation recovers,” said Airbus chief executive officer Guillaume Faury.

“We have withdrawn our 2020 guidance due to the volatility of the situation. At the same time, we are committed to securing the liquidity of the Company at all times through a prudent balance sheet policy. I am convinced that Airbus and the broader aerospace sector will overcome this critical period.”
 
Reflecting the Company’s prudent balance sheet policy and to ensure financial flexibility, Airbus’ management has received approval from the Board of Directors to: secure a new credit facility amounting to € 15 billion in addition to the existing € 3 billion revolving credit facility; withdraw the 2019 dividend proposal of € 1.80 per share with an overall cash value of approximately € 1.4 billion; and suspend the voluntary top up in pension funding.

Given the limited visibility due to the evolving COVID-19 situation, the 2020 guidance is withdrawn. Operational scenarios, including measures to minimise cash requirements, have been identified and will be activated depending on the further development of the pandemic.

With these decisions, the Company has significant liquidity available to cope with additional cash requirements related to the coronavirus. Liquidity resources previously standing at approximately € 20 billion, comprising around € 12 billion in financial assets at hand and around € 8 billion in undrawn credit lines, were further bolstered by converting an existing € 5 billion credit line into a new facility amounting to € 15 billion. Available liquidity now amounts to approximately € 30 billion.

By maintaining production, managing its resilient backlog, supporting its customers and securing financial flexibility for its operations, Airbus intends to secure business continuity for itself even in a protracted crisis, a company statement said. – TradeArabia News Service




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