Airbus Posts First Order Blank in a Year as Virus Spreads
Airbus Logged No Orders in February, When Virus Spread Worldwide
(Bloomberg) -- Airbus SE logged zero orders in February, the first such drought in 13 months, as airlines held back on new commitments at a time when the coronavirus outbreak was spreading from China to other parts of the world.
The figures, announced after Thursday’s close, come in stark contrast to the European planemaker’s sales success in January, when it recorded 278 net orders, mainly for A320neo-series single-aisle jets as airlines added capacity.
Airbus posted a blank even though Boeing Co.’s rival 737 Max has been grounded for almost a year following two fatal crashes, putting sales and narrow-body production for the Chicago-based company on hold.
While aircraft orders fluctuate from month to month, the Airbus numbers could portend a worsening climate for jetliner demand. Shares of the Toulouse, France-based manufacturer traded more than 7% lower at 100.12 euros as of 11:09 a.m. in Paris Friday, extending this year’s decline to 23%.
Though Airbus won no orders in February, there were also no cancellations, which may be just as notable given the extent to which the Covid-19 outbreak is ravaging travel, Jefferies International analyst Sandy Morris said in a note.
The International Air Transport Association warned Thursday that carriers may lose $113 billion in revenue this year because of the virus, almost four times greater than an estimate it made just two weeks earlier.
Concerns are rising about weaker carriers, especially in Asia. The outbreak has infected almost 100,000 people worldwide, with over 3,000 dead.
Airbus delivered 55 aircraft in February, it said in the statement.
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To contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, Christopher Jasper, Andrew Noël
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