Airbus announces an extension on the ongoing furlough in the UK and Spain to combat COVID-19

Airbus announces an extension on the ongoing furlough in the UK and Spain to combat COVID-19
  • Airbus announces an extension on the ongoing furlough in the UK & Spain to combat COVID-19.
  • France announced a £13.57 billion financial support for its aerospace industry.
  • Aer Lingus says it will cut about 500 jobs to shore up finances amidst the Coronavirus pandemic.

Airbus SE (EPA: AIR) said on Friday that it is extending the ongoing furlough for a total of 5,300 employees in the United Kingdom and Spain as the Coronavirus pandemic continues to weigh on the global airline industry. In an emailed statement, a spokesman for Airbus commented:

“This will be effective from 20th May till 30th September and affects all Airbus Operationss SL employees in Spain (with some exceptions), which means around 3,100 employees. Airbus Helicopters and Airbus DS employees in Spain are not impacted.”

Shares of the company closed at £62.33 per share on Friday that marks a decline of a little under 50% year to date in the stock market after recovering from a low of £44.41 per share in March. Learn more about how can you start trading in the stock market.

France announced a £13.57 billion aid for its aerospace industry

In the UK, the spokesman added, the furlough will affect roughly 2,200 employees and is planned for 20th July to 9th August. The spokesman also said:

“In France, all employees of the commercial aircraft division are in some way affected.”

Airbus has reduced its working hours by 30% per week in France where about 29,500 of its employees are currently working.

The world’s largest aeroplane manufacturer had said in late May that it might be pushed into deeper layoffs in upcoming months as COVID-19 continues to hurt demand for air travel. The novel flu-like virus has so far infected a little under 9 million people worldwide and caused more than 468,000 deaths.

To help its aerospace industry cushion the economic blow from COVID-19, France announced a £13.57 billion aid in the first week of June as it acknowledged that hundreds of thousands of jobs were at stake due to the health crisis. Airbus also took a massive hit as several airlines deferred aircraft deliveries in recent months.

At the time of writing, the largest European aeroplane manufacturer has a market cap of £48.13 billion.

Aer Lingus says it will cut about 500 jobs

In separate news, Irish air carrier, Aer Lingus, that is a subsidiary of International Airlines Group, revealed plans of slashing its workforce by about 500 jobs due to the rising Coronavirus uncertainty. Aer Lingus said in a statement:

“Aer Lingus has informed the employment minister that headcount reductions of up to 500 employees across the business are anticipated.”

By Wajeeh Khan
Mr. Khan specialises in Public Health by academia but is a trader by passion. Taking up two new hobbies of writing and trading in his teen years, he is now a professional trader and news writer with over 5 years of experience in various financial markets. Khan is passionate about bringing insightful articles to his readers and hopes to add value to their portfolios.
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