Please ensure Javascript is enabled for purposes of website accessibility

Airbus to Pause Production in France and Spain Amid Pandemic

By Howard Smith - Mar 17, 2020 at 8:51AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company is taking steps to protect its workers, as airlines also seek to preserve cash.

Airbus (EADSY -0.65%), the world's largest plane builder, has announced a pause in production and assembly at its plants in France and Spain. The shutdown is scheduled to last four days, and follows measures being implemented by the governments of both countries to try to contain COVID-19. 

"This will allow sufficient time to implement stringent health and safety conditions in terms of hygiene, cleaning and self-distancing, while improving the efficiency of operations under the new working conditions," the company said in a press release.

an airplane being worked on in a hangar

Image source: Getty Images.

Flight and spending cuts

This comes as airlines announce major cutbacks in flightsAmerican Airlines and United Airlines both recently announced new capacity cuts due to the continuing spread of the novel coronavirus. This followed a similar announcement last week by Delta Air Lines.

Today, Australian airline Qantas Group said it will eliminate 90% of its international flights, resulting in the grounding of almost all of its wide-body fleet. The company also said it will aim to help the economy by transitioning some of its passenger fleet to freight-only flights to move cargo.

Airlines are also announcing ways in which they plan to preserve cash. These include cuts in executive salaries, hiring freezes, and capital expenditure cuts. In a Friday memo to Delta employees, CEO Ed Bastian said the cost saving plans will include deferring new aircraft deliveries, and lowering capital spending by more than $2 billion for the year. 

These cuts will affect manufacturers like Airbus and Boeing, as airlines continue to focus on cash preservation to ride out the crisis. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Airbus Stock Quote
Airbus
EADSY
$24.48 (-0.65%) $0.16

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
332%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.