Airbus CEO warns of more drastic job cuts after travel demand dips post-summer

Paris: Airbus SE may have to cut more jobs because travel demand has declined since the end of the summer months and carriers are pushing back deliveries of new planes, according to CEO Guillaume Faury.

"The situation has worsened," he said. "Airlines are in a more difficult situation after the holidays than what we were hoping."

The European planemaker will have to "adapt" its cost-cutting plan, in particular for jobs, he added. "It will be very difficult to stick with voluntary departures," the executive said, reiterating that the the company "is potentially at risk" if it doesn't take the right measures.

Forced delays

He pointed to a 40 per cent decline in the jet maker's production and deliveries. The European aerospace giant, grappling with an unprecedented collapse in air travel because of the coronavirus, is trying to entice workers to leave to limit tougher measures it's unlikely to avoid altogether.

The planemaker has pledged to slash 15,000 jobs across its operations, with France braced to absorb about one-third of those. "Airlines aren't canceling their orders but aren't honoring deliveries," Faury said. "The delays on deliveries is very strong" because carriers don't have the means to take ownership of the planes as they had planned.