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| Airbus, a Jewel of the European Economy, Signals Distress | Airbus, a Jewel of the European Economy, Signals Distress |
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| Airbus, the European aircraft giant, could not make planes fast enough earlier in the year. But the coronavirus pandemic has forced it to face a devastating fact: Some airlines that put in orders do not want its planes now. | Airbus, the European aircraft giant, could not make planes fast enough earlier in the year. But the coronavirus pandemic has forced it to face a devastating fact: Some airlines that put in orders do not want its planes now. |
| The aerospace company said on Wednesday that 60 of its aircraft could not be delivered in the first quarter, partly because the airlines that ordered them want to put off paying for them. | The aerospace company said on Wednesday that 60 of its aircraft could not be delivered in the first quarter, partly because the airlines that ordered them want to put off paying for them. |
| With the majority of the world’s commercial aircraft sitting on runways and not earning money, airlines do not need new planes. | With the majority of the world’s commercial aircraft sitting on runways and not earning money, airlines do not need new planes. |
| “We are now in the midst of the gravest crisis the aerospace industry has ever known, ” Guillaume Faury, the company’s chief executive, said in a statement on Wednesday. | “We are now in the midst of the gravest crisis the aerospace industry has ever known, ” Guillaume Faury, the company’s chief executive, said in a statement on Wednesday. |
| Airbus reported a net loss of 481 million euros (about $522 million) in the first quarter of 2020, a reversal from a profit of €40 million a year earlier. | Airbus reported a net loss of 481 million euros (about $522 million) in the first quarter of 2020, a reversal from a profit of €40 million a year earlier. |
| Last year, while Boeing struggled with the grounding of its 737 Max plane after two crashes killed a total of 346 people, Airbus topped its American rival in the global race for aircraft deliveries. Two months ago, Mr. Faury told investors that the company’s A320 jets — the main competitor to the 737 Max and the bulk of Airbus’s commercial business — were sold out through 2025. | Last year, while Boeing struggled with the grounding of its 737 Max plane after two crashes killed a total of 346 people, Airbus topped its American rival in the global race for aircraft deliveries. Two months ago, Mr. Faury told investors that the company’s A320 jets — the main competitor to the 737 Max and the bulk of Airbus’s commercial business — were sold out through 2025. |
| Now with business down by a third or more, Airbus’s factories in Germany and France have been producing too many aircraft. The company has been spending far more cash — to pay employees and buy the hundreds of thousands of components that make up an aircraft — than it is receiving from customers. | Now with business down by a third or more, Airbus’s factories in Germany and France have been producing too many aircraft. The company has been spending far more cash — to pay employees and buy the hundreds of thousands of components that make up an aircraft — than it is receiving from customers. |
| Recently, Mr. Faury sent a memo to employees warning that Airbus, with a work force of 134,000, was “bleeding cash at an unprecedented speed, which may threaten the very existence of our company.” | Recently, Mr. Faury sent a memo to employees warning that Airbus, with a work force of 134,000, was “bleeding cash at an unprecedented speed, which may threaten the very existence of our company.” |
| Specifically, the company bled €8.5 billion in cash in the first quarter, with €3.6 billion going to settle a corruption investigation with the authorities in France, Britain and the United States. | Specifically, the company bled €8.5 billion in cash in the first quarter, with €3.6 billion going to settle a corruption investigation with the authorities in France, Britain and the United States. |
| Over all, it delivered 122 commercial aircraft, down from 162 in the first quarter of 2019. Delivery is a key threshold for earning revenue for aircraft makers. | Over all, it delivered 122 commercial aircraft, down from 162 in the first quarter of 2019. Delivery is a key threshold for earning revenue for aircraft makers. |
| The numbers released Wednesday reflected the January-March period, and the situation for Airbus appears likely to worsen before it improves because the effects of the pandemic on air travel started only midway through the quarter. | The numbers released Wednesday reflected the January-March period, and the situation for Airbus appears likely to worsen before it improves because the effects of the pandemic on air travel started only midway through the quarter. |
| “April and maybe also the following months will be tougher in terms of deliveries than what we have seen,” Dominik Asam, the company’s chief financial officer, said on a call with reporters, although he expressed optimism that the situation might improve later in the year. | “April and maybe also the following months will be tougher in terms of deliveries than what we have seen,” Dominik Asam, the company’s chief financial officer, said on a call with reporters, although he expressed optimism that the situation might improve later in the year. |
| Earlier in April, the company said it would slow overall production by about one-third by temporarily halting or slowing work at various facilities, including plants in Mobile, Ala., Britain, France and Germany. On the same call, Mr. Faury said these output cuts would be reviewed later this year and could go deeper. | Earlier in April, the company said it would slow overall production by about one-third by temporarily halting or slowing work at various facilities, including plants in Mobile, Ala., Britain, France and Germany. On the same call, Mr. Faury said these output cuts would be reviewed later this year and could go deeper. |
| During these slowdowns, the company is shedding staff through government-financed furloughs. On Thursday, about half of the 6,000 workers at a facility in Broughton, Wales, that makes wings will begin a furlough largely paid for by the British government but partly financed by Airbus. It is also furloughing about 3,000 workers through a French government-assistance plan. More of these temporary job reductions are likely to come in France, Spain and Germany, according to the company. | During these slowdowns, the company is shedding staff through government-financed furloughs. On Thursday, about half of the 6,000 workers at a facility in Broughton, Wales, that makes wings will begin a furlough largely paid for by the British government but partly financed by Airbus. It is also furloughing about 3,000 workers through a French government-assistance plan. More of these temporary job reductions are likely to come in France, Spain and Germany, according to the company. |
| The company is trying to adjust its operations to the collapse of the world’s airlines, Airbus’s main customers. | The company is trying to adjust its operations to the collapse of the world’s airlines, Airbus’s main customers. |
| “This is just a very unusual circumstance in which the end-user market has simply failed,” said Richard Aboulafia, vice president for analysis at Teal Group, an aviation consulting firm. “This has never happened before.” | “This is just a very unusual circumstance in which the end-user market has simply failed,” said Richard Aboulafia, vice president for analysis at Teal Group, an aviation consulting firm. “This has never happened before.” |
| A meltdown at Airbus would have geopolitical ripples. With German, French and Spanish ownership and plants strung across the continent, it is a largely successful pan-European project that has created a powerful rival to Boeing and the American aerospace industry. | A meltdown at Airbus would have geopolitical ripples. With German, French and Spanish ownership and plants strung across the continent, it is a largely successful pan-European project that has created a powerful rival to Boeing and the American aerospace industry. |
| “The importance of Airbus transcends the purely economic aspects of its activities,” said Daniel Capparelli, head of the trade practice at Global Counsel, a consulting firm. Airbus, he said, is the “flagship example” of choosing and supporting European Union-wide industrial champions. | “The importance of Airbus transcends the purely economic aspects of its activities,” said Daniel Capparelli, head of the trade practice at Global Counsel, a consulting firm. Airbus, he said, is the “flagship example” of choosing and supporting European Union-wide industrial champions. |
| Updated June 24, 2020 | |
| Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. | |
| A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| Its success “enables Europe to throw its weight around and compete with the U.S. on a global scale,” said Mujtaba Rahman, managing director for Europe at the Eurasia Group, a political consulting firm. | Its success “enables Europe to throw its weight around and compete with the U.S. on a global scale,” said Mujtaba Rahman, managing director for Europe at the Eurasia Group, a political consulting firm. |
| Beyond its own employees, Airbus supports hundreds of thousands of other mostly well-paid and technologically sophisticated jobs across Europe. | Beyond its own employees, Airbus supports hundreds of thousands of other mostly well-paid and technologically sophisticated jobs across Europe. |
| “This is the sort of employment that national governments everywhere have been trying to grow,” said Sandy Morris, an analyst at Jefferies, an investment bank. If Airbus suffers a steep downturn, he added, “I really don’t like the implications for employment across Europe.” | “This is the sort of employment that national governments everywhere have been trying to grow,” said Sandy Morris, an analyst at Jefferies, an investment bank. If Airbus suffers a steep downturn, he added, “I really don’t like the implications for employment across Europe.” |
| Analysts said Airbus was not in immediate danger of running out of money. The company has a strong balance sheet, reinforced by €15 billion in new credit lines. If stress increases, the company could take loans from the European Central Bank, they said. | Analysts said Airbus was not in immediate danger of running out of money. The company has a strong balance sheet, reinforced by €15 billion in new credit lines. If stress increases, the company could take loans from the European Central Bank, they said. |
| “They are in an OK state to withstand what is likely to be a very bad year,” said Jeremy Bragg, an analyst at Redburn, a market research firm. | “They are in an OK state to withstand what is likely to be a very bad year,” said Jeremy Bragg, an analyst at Redburn, a market research firm. |
| This relative financial strength could give Airbus a competitive advantage over Boeing, although at present there is not much to play for. Boeing, which remains hobbled awaiting the return of its most popular plane, said Wednesday that it planned to cut its work force by about 10 percent. | This relative financial strength could give Airbus a competitive advantage over Boeing, although at present there is not much to play for. Boeing, which remains hobbled awaiting the return of its most popular plane, said Wednesday that it planned to cut its work force by about 10 percent. |
| Mr. Faury appears to be trying to prepare both his employees and their unions for what are likely to be tough measures to reduce costs. | Mr. Faury appears to be trying to prepare both his employees and their unions for what are likely to be tough measures to reduce costs. |
| He has also become a cheerleader in the efforts of ailing airlines to secure government aid, noting that his company — and its vast network of suppliers — needs healthy airlines. The company will not be able to perform well after the crisis without “an ecosystem that will be still alive and able to recover,” he said. | He has also become a cheerleader in the efforts of ailing airlines to secure government aid, noting that his company — and its vast network of suppliers — needs healthy airlines. The company will not be able to perform well after the crisis without “an ecosystem that will be still alive and able to recover,” he said. |
| In a recent interview with the German magazine Der Spiegel, he also suggested that European governments could promote an arrangement for airlines to phase out old, polluting aircraft and replace them with more climate-friendly models. | In a recent interview with the German magazine Der Spiegel, he also suggested that European governments could promote an arrangement for airlines to phase out old, polluting aircraft and replace them with more climate-friendly models. |
| Mr. Aboulafia, though, warned that the collapse of air travel looked “a lot worse” than previous versions, like the 2008-9 financial crisis. Air traffic, for instance, is down about 80 percent, according to the International Air Transport Association, an organization that represents airlines. | Mr. Aboulafia, though, warned that the collapse of air travel looked “a lot worse” than previous versions, like the 2008-9 financial crisis. Air traffic, for instance, is down about 80 percent, according to the International Air Transport Association, an organization that represents airlines. |
| Airbus and other plane makers are likely to need to dial back a lot more than they have, he said. It will also probably take years before demand for aircraft recovers. | Airbus and other plane makers are likely to need to dial back a lot more than they have, he said. It will also probably take years before demand for aircraft recovers. |
| “In order to keep up even a minimal level of production, they are going to need help” from governments and financiers, he said. | “In order to keep up even a minimal level of production, they are going to need help” from governments and financiers, he said. |