The Recovery Is Driving The Travel Industry Back On Its Feet
After a near-tripling of core operating profit last year due to a partial recovery in jet deliveries and increased defence and helicopter earnings during the pandemic, Europe's Airbus forecasted 720 plane deliveries and higher profits in 2022.
After swinging to a record net profit of € 4.2 billion ($ 4.8 billion), Europe's largest aircraft business has reinstated its dividend for the first time in two years, buoyed by the pausing of its A380 superjumbo and a reversal of some Covid-19 liabilities.
- The company's adjusted operating profit increased to € 4.8 billion from € 1.7 billion a year before
- All while revenues increased by 4% to € 52.1 billion for 2022 and Airbus forecasted a profit of € 5.5 billion.
The CEOs of Europe's major airlines have voiced cautious optimism that the worst of the pandemic disruption has passed, and that flying schedules will be greatly increased for the summer season.
Short-term pricing and yield uncertainty persists, and Ryanair has stated that "significant price stimulation" will be required for air travel to rebound before the peak summer season begins.
Despite Airbus' excellent recovery, the CEO, Guillaume Faury, warned that the "pandemic is not yet behind us". On a conference call, company executives said they were still seeing problems in "supply, logistics and labour" while Faury said the market will fully recover between 2023 and 2025.
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