Shares of Airbus (EPA: AIR) jumped 6% on Thursday after the jet-maker said it aims to avoid consuming cash in the second half of the year.
Airbus reported an adjusted second-quarter operating loss of 1.22 billion euros, worse than a 1.02 billion loss expected from the market analysts. Moreover, the company saw its revenues tumble 55% to 8.31 billion euros, again lower than 8.55 billion expected from analysts.
“We believe it is going to be a long and slow recovery. We are reducing the costs across the board given the new situation,” said Chief Executive Guillaume Faury.
The jet maker is slashing 15,000 of its workforce or 11% of the total number of employees. This will lead to a 40% decrease in output in the next two years.
Airbus added that it has practically halved the production of wide-body A350 jets from 9.5 a month before the pandemic to 5.
Still, investors were positively surprised to hear that Airbus’ underlying outflows “remained steady”. This is believed to be a key factor behind a surge in Airbus share price of 6% today despite a weaker-than-expected loss.