Airbus CEO Warns Drastic Cuts Are Needed

The CEO of Airbus (OTC: EADSY) has told employees that the company is "bleeding cash" and needs to cut costs quickly as airlines retrench due to the COVID-19 pandemic.

Airbus and archrival Boeing (NYSE: BA) are scrambling to deal with a sudden decline in demand for new jets due to the pandemic. Airlines have seen travel demand evaporate overnight, and in response are grounding planes and cutting expenses.

Airbus has already announced production cuts, trimming the number of its previously hot-selling A320 planes it makes each month by about one-third and the monthly rate on larger jets by about 40%. But CEO Guillaume Faury, in a letter to employees obtained by Bloomberg, said those cuts might not be enough and that Airbus is reassessing its long-term forecast for plane sales.

Source Fool.com