Airbus to restore dividend as profits soar to record high
Airbus has announced its highest-ever profits and a return to paying a dividend to shareholders in a sign of the aerospace industry’s burgeoning recovery from the Covid pandemic.
The European plane-maker reported record net income for 2021 of €4.2bn (£3.5bn), in stark contrast to the steep €1.1bn loss it experienced in 2020 when the pandemic first hit. The company, which is headquartered in Toulouse, France, made revenues of €52bn, up from €50bn in 2020.
The global aerospace industry was one of the worst affected by the pandemic, as travel restrictions led to a dramatic slump in income for its airline customers. Orders for new planes were among the first things they cancelled.
Airbus cut 15,000 jobs in June 2020, including at its UK factory in north Wales, which makes wings, in response to what its chief executive, Guillaume Faury, described as the industry’s “gravest crisis”.
Its US rival Boeing cut 30,000, in part reflecting the global grounding of its previous bestseller, the 737 Max, after two fatal crashes.
Faury hailed the company’s “remarkable” full-year results on Thursday, and said its cost cutting had paid off as he planned the first shareholder payout in two years. He also highlighted defence, space and helicopter businesses that proved more resilient during pandemic lockdowns.
“2021 was a year of transition, where our attention shifted from navigating the pandemic towards recovery and growth,” he said. “The strong financials reflect the higher number of commercial aircraft deliveries, the good performance of our helicopters and defence and space businesses, as well as our efforts on cost containment and competitiveness.”
Airbus delivered 611 aircraft during the year, ahead of its target of 600, driven mainly by 483
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