Airbus is a leading manufacturer of aircraft globally with a few types of aircraft. The A220, for example, is one of the company’s answers to the pandemic, where this aircraft is mainly delivered to airlines looking to right-size operations post-pandemic. The A350 is a new generation aircraft designed to reduce operating costs and carbon emissions, which is a step in the right direction for ESG-related matters. The other aircraft models are larger and centred around the commercial market’s demand for air travel. We think that the company has taken the right steps to manage its inventory by, for example, focusing its resources on delivering more cost-efficient aircraft. This was after wide-body aircraft had suffered much during the height of the pandemic.
Travel demand should pick up rapidly once Covid-19 tapers off and this aircraft manufacturer is all ready for it
Paris-listed Airbus SE is a global aeronautics and space company that operates three main segments, which are Airbus aircraft, defence and space, and helicopters. Our case for Airbus is that it is a play on the global pandemic recovery. Even if new variants and strains of the virus emerge in the future, society and governments are likely to find a way to contain the virus with less need for travel and social movement restrictions, as compared to when it first appeared. Thus, aircraft manufacturers such as Airbus should be better equipped to weather any pandemic related shocks. Further, these restrictions are not likely to persist for long periods, and travel demand should pick up rapidly once the pandemic-related panic tapers off.
