AAR Corp. (AIR) Tops Q3 EPS by 3c, Revenues Beat; Withdraws FY20 Guidance, Citing 'Macro Uncertainty from Impact of COVID-19'

Coronavirus crisis rocks airlines and planemakers

By Graham Fahy and Terje Solsvik

DUBLIN/OSLO (Reuters) - The grounding of virtually all flights by Europe's largest budget airline and European air traffic data on Tuesday highlighted the enormity of the shock to aviation industries from the coronavirus now emptying skies around the globe.

Ryanair told customers it had virtually written off the next two months, while European air traffic management body Eurocontrol said volumes on Monday were down more than 75% from the same day last year.

"We do not expect to operate flights during the months of April and May at this... More

Airbus sees airlines seeking to defer or cancel orders

PARIS (Reuters) - Airbus (NYSE: AIR) said in a stock market filing on Monday that customers could seek to cancel or postpone delivery of airliners and helicopters as the coronavirus crisis continues to escalate.

It issued the warning in an annual reference document ahead of its upcoming Amsterdam shareholder meeting, for which it urged participants to vote by proxy rather than attend in person due to widespread measures to slow the spread of the disease.

Airbus Chief Executive Guillaume Faury said earlier that several airlines had asked... More

Boeing suspending Washington state production due to coronavirus risks

By Eric M. Johnson

SEATTLE (Reuters) - Boeing Co (NYSE: BA) said on Monday it would halt production at its Washington state twin-aisle jetliner factory as a temporary measure to help fight the coronavirus outbreak.

Confirming an earlier Reuters report, and after a similar move by European rival Airbus SE (NYSE: AIR), Boeing said a temporary operations shutdown at its facilities across Seattle's Puget Sound region will last 14 days beginning March 25. It will include a deep clean of its buildings and equipment.

The fast-spreading coronavirus has disrupted... More

GE's aviation unit to cut 10% of U.S. workforce: CEO

(Reuters) - General Electric Co's (NYSE: GE) aviation unit will cut its U.S. workforce by about 10%, Chief Executive Officer Larry Culp said in a letter to staff on Monday, as a shattered airline industry sought state support to survive the coronavirus crisis.

GE's aviation unit, which makes engines for Boeing Co (NYSE: BA) and Airbus SE (NYSE:... More

European stocks back in red as virus spread feeds recession fears

By Ambar Warrick and Sagarika Jaisinghani

(Reuters) - European shares fell again on Monday as the continued spread of the coronavirus fed into panic over its economic shock, with a recession in 2020 looking likely.

The benchmark STOXX 600 index ended 4.3% lower, erasing nearly all of its gains over the past two days, indicating that stimulus measures by major banks and governments appeared to be doing little to reassure investors.

Markets had briefly pared losses earlier in the day after the U.S. Federal Reserve underlined aggressive action to offset the economic disruption from the outbreak.

Airbus adds 15 billion euro credit line, scraps dividend

By Matthieu Protard and Tim Hepher

PARIS (Reuters) - Airbus (NYSE: AIR) boosted its liquidity with a 15 billion euro ($16 billion) expanded credit facility on Monday while suspending its 2020 outlook in response to the coronavirus crisis that has grounded much of the global airlines fleet.

The European planemaker also joined U.S. rival Boeing (NYSE: BA) in scrapping its 2019 dividend, worth a total of 1.4 billion euros. It also said it would suspend the voluntary top-up of staff pension schemes.

"These measures are designed... More

Airbus says plants to reopen at slower production rate

PARIS (Reuters) - Airbus (NYSE: AIR) confirmed on Sunday it would resume only partial aircraft production when its French and Spanish factories reopen on Monday after a four-down shutdown to tackle health concerns over the coronavirus.

Some French labor unions said on Saturday it had been decided that production would resume at a slower than normal rate.

In a statement late on Sunday, the European... More

Coronavirus grounds more flights, takes toll on jobs

By Jamie Freed and Anshuman Daga

SYDNEY/SINGAPORE (Reuters) - Widening travel curbs to contain the spread of the coronavirus prompted more flight cancellations on Monday, with new restrictions spanning India, Australia, New Zealand, the United Arab Emirates (UAE), Hong Kong, Singapore and Taiwan.

The toll on jobs rose, too, with engine maker GE Aviation (NYSE: GE) saying it would cut 10% of its U.S. workforce, while around 10,000 staff at Singapore Airlines (NASDAQ: SIAL) will be affected by cost-cutting measures, including unpaid leave.

Emirates stops nearly all passenger flights, slashes wages

By Alexander Cornwell

DUBAI (Reuters) - Emirates, one of the world's biggest long-haul airlines, said on Sunday it would stop nearly all passenger flights this week and cut staff wages by as much as half because of the coronavirus impact on travel demand.

The state-owned Dubai carrier had already announced the suspension of nearly 70% of its network of 159 destinations, asked staff to go on unpaid leave and frozen recruitment as the industry faces one of its biggest ever challenges.

"As a global network airline, we find ourselves in a situation where we cannot viably operate passenger... More

Airbus says in talks with governments, declines comment on loans

PARIS (Reuters) - Airbus (NYSE: AIR) said on Friday it is in regular dialogue with European governments, but declined to comment on a report that the European planemaker may seek government support to tackle the coronavirus crisis.

On Monday, Airbus told the German... More

Norwegian Air gets lifeline but it may not be enough

By Victoria Klesty

OSLO (Reuters) - Budget carrier Norwegian Air may struggle to meet the tough conditions set by the government as part of its financial aid, raising fresh doubts about its liquidity as coronavirus inflicts more financial pain on the airline sector.

Norway on Thursday said it would will back airlines with credit guarantees worth up to 6 billion Norwegian crowns ($537 million) to weather the coronavirus crisis.

Half of that would go to Norwegian Air provided that it could convince commercial lenders to supply a further 30 million crowns for an initial guarantee of 300 million.

Ventilator rush: UK says new ones will be approved next week

By Sarah Young, Kate Holton and Costas Pitas

LONDON (Reuters) - Britain said on Friday that engineering companies had come up with an emergency ventilator prototype to treat coronavirus patients that could be approved next week, though one industry source told Reuters full production was several weeks away.

Britain, where 145 people with COVID-19 have died so far, has a shortage of ventilators which can save the lives of those who develop complications after contracting the virus. The UK's existing stock of around 5,000-8,000 ventilators is inadequate.

Given such an acute shortage in a country with a... More

South Korea prosecutors launch probe into allegations that Korean Air executive took payment from Airbus

SEOUL (Reuters) - South Korean prosecutors on Thursday launched a probe into allegations that Korean Air's CEO and his sister are responsible for a former executive's taking payments from Airbus (NYSE: AIR) in return for buying that company's aircraft.

This year, Airbus said it would pay a record $4 billion in fines after reaching a plea bargain with prosecutors in Britain, France and United States over accusations of bribery and corruption stretching back at least 15 years.

A French document detailing Airbus' settlement said Airbus had... More

Malaysia's AirAsia says review found Airbus procurement process robust

KUALA LUMPUR (Reuters) - AirAsia Group Bhd said on Friday an independent probe into corruption allegations from Britain's Serious Fraud Office (SFO) has found the Malaysian airline's procurement process with European planemaker Airbus SE (NYSE: AIR) robust and justifiable.

In a filing to the stock exchange, AirAsia said Airbus' sponsorship of a sports team the airline's top executives co-owned was at the relevant time disclosed to and supported by the board of... More