Bombardier Aviation reports revenue of US$1.2 billion in second-quarter 2020

©Bombardier has delivered five Global 7500 jets during the second quarter

Bombardier’s Aviation-segment has reported revenues of US$1.2 billion during the second-quarter, reflecting a lower level of production activity and deliveries as the corporation suspended business aircraft operations in Canada and key aerostructures operations in Mexico and Belfast due to the COVID-19 pandemic. Starting in the last weeks of April and through the month of May, operations gradually resumed with new safety measures in place, allowing Aviation to deliver 20 business aircraft during the quarter, including five Global 7500. Bombardier’s worldwide customer service operations have continued to operate largely uninterrupted throughout the pandemic. Service centres have shown resilience maintaining a high Read more

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Embraer announces revenue from commercial aviation sector has dropped 82%

The world’s third-largest planemaker, Brazil’s Embraer, has announced that in the second quarter of 2020, revenue from its commercial aircraft sector has fallen 82% to US$109 million compared to last year. The company also reported a loss of US$315 million for the last quarter. The drop in revenue has been blamed on the worldwide fallout from the COVID-19 pandemic which is having a devastating effect on air travel and, bar cargo, the commercial aviation sector as a whole. The announcement comes just three months after Boeing pulled the plug on it’s US$4.2 billion plan to acquire the commercial aviation arm Read more

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Lufthansa Group reports net loss of €3.6 billion for first half of 2020

©Lufthansa

The collapse in demand for air travel due to the CORONA pandemic led to an 80% drop in revenue for the Lufthansa Group in the second quarter to €1.9 billion (previous year: €9.6 billion). Most of the revenue (€1.5 billion) was generated by Lufthansa Cargo and Lufthansa Technik. The Lufthansa Group Adjusted EBIT in the quarter under review amounted to minus €1.7 billion (previous year: €754 million), despite extensive cost reductions. Operating expenses were reduced by 59%, primarily through the introduction of short-time working for large parts of the workforce and the cancellation of non-essential expenditures. The consolidated net income Read more

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Willis Lease Finance reports second quarter pre-tax profit of US$9.7 million

Willis Lease Finance has reported second quarter total revenues of US$75.0 million and pre-tax profit of US$9.7 million. The company reported lower revenue in the second quarter of 2020 than the prior year period due primarily to the impact the COVID-19 pandemic has had on the aviation industry, generally, leading to reduced revenues in the core leasing business. Aggregate lease rent and maintenance reserve revenues were US$68.4 million for the second quarter of 2020. “We are pleased to have maintained profitability in the second quarter, with US$9.7 million of reported pre-tax income, given the unprecedented impacts the COVID-19 pandemic has Read more

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Dubai Aerospace Enterprise posts financial results for first-half 2020

Dubai Aerospace Enterprise (DAE) has reported its financial results for the six months ended June 30, 2020. DAE reported total revenue of US$672.6 million compared to US$735.2 million in the first-half of 2019 and net income of US$121.7 million compared to US$197.1 million in the previous year. The reported net income in the first-half was lower attributable primarily to 23 fewer aircraft in the Owned Aircraft portfolio, fewer asset sales resulting in lower gains on sale of assets, reduced finance income, and higher provisions for trade receivables offset by lower interest expense. As of July 31, 2020, DAE has granted Read more

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Virgin Atlantic files for bankruptcy protection in the U.S.

Virgin Atlantic ©AirTeamImages

A month after announcing that it had secured financing to ensure the airline’s continuation for the next 18 months, Britain’s Virgin Atlantic has filed for Chapter 15 bankruptcy protection in the U.S. The move is a strategic one employed by non-U.S. companies to restrict creditors from tying up assets or filing a lawsuit in the U.S. The move comes hot on the heels of Virgin Australia, another carrier in the Virgin Group, which went into administration in April with debts of US$6.8bn and over 12,000 creditors. In addition to filing for bankruptcy protection in the southern district of New York, Read more

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Fraport revenue slumps by nearly 50% during the first half of 2020

Frankfurt Airport ©Fraport

The airport operator Fraport posted a sharp drop in revenue during the first half of 2020, with a clearly negative Group result. The operating performance, which already slowed down in the first quarter of the year, weakened further during the second quarter, in line with expectations. Frankfurt Airport’s passenger traffic plummeted by 94.4% year-on-year in the April-to-June 2020 period, while falling by a total of 63.8% during the entire first half. Also at Fraport’s Group airports worldwide, passenger traffic came to a virtual standstill in the second quarter. In the first half of 2020, Group revenue was down by 48.9% Read more

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MTU Aero Engines reports decline in revenue and earnings

In the first six months of 2020, MTU Aero Engines AG generated revenue of €2,048.8 million compared to €2,243.0 million in the first half of 2019. Operating profit was €224.2 million, compared to €365.2 million in the prior-year period. The EBIT margin was 10.9% in the first six months of 2020 (1-6/2019: 16.3%). Net income declined from €261.0 million to €161.3 million. “The figures reflect the first effects of the coronavirus pandemic,” said Reiner Winkler, CEO of MTU Aero Engines AG. “A better estimate of the quantitative impact of the coronavirus crisis is now also possible. On Friday, we therefore issued new guidance for 2020.” MTU now expects Read more

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Shares in GE slump 5% as Covid-19 pandemic ravages aviation industry – hits second-quarter earnings hard

Reporting cash outflow of US$2.1 billion from its industrial operations – well below an anticipated US$3.5 billion – US$4.5 billion, shares in the Boston, U.S.-based conglomerate fell 5%. The aviation unit of the company, which is usually the most profitable, was hardest hit in terms of sales and orders. This unit, which makes engines for both Boeing and Airbus had already been severely impacted by the grounding of the Boeing 737 MAX, while Boeing’s announcement that it is further reducing production numbers of the troubled jet have compounded GE’s problems. However, GE remains optimistic, noting that global flight numbers have Read more

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IAG Cargo reports 33% increase in second-quarter 2020 revenues

IAG Cargo has reported its second-quarter 2020 results (Q2 2020), reporting commercial revenues of €369 million over the period from April 1 to June 30, 2020, an increase of 33.1% on the same period in 2019 at constant currency.  Overall yields for the quarter were up 224.7% to the same time last year at constant currency, reflecting the extra costs of cargo-only flying and dedicated charters and a significantly changed flying program. Sold tons were down 51.2%. “Q2 was, of course, dominated by the Covid pandemic. As passenger aircraft were grounded across the world, our teams adapted to ensure IAG Cargo continued to play a Read more

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