Charles Alcock is managing editor of the AIN Media Group, having rejoined the company in 2019. He has been an aviation journalist since 1986, and previously worked for AIN from 1990 to 2017, most recently as editor-in-chief. His main focus is on covering new aviation technology and business models, as well as international news.
Having been raised in the London area, Alcock studied at the University of Manchester in the UK and earned an honors degree in Politics and Modern History. He speaks English and French, and some German.

Managing Editor

Charles Alcock

Leonardo sees most of the negative effect of the Covid-19 pandemic falling on the civil side of its business. Announcing first-quarter results on May 7, the Italian aerospace and defense group indicated that a “heavy” slowdown this year could diminish income from the civil helicopters sector, as well as from its aerostructures work and its ATR regional airliner joint venture.

 


The group’s civil aviation businesses accounted for about 18 percent of revenues in 2019. It said military and government markets continued to show more resilience.&nbsp;

 


Earnings suffered a 75 percent decline in the first quarter, falling to €41 million ($43 million) before interest, tax, and amortization. The impact of the Covid-19 pandemic resulted in a net loss of €59 million ($61 million) for the first three months. Revenues finished&nbsp;only 5 percent down, at €2.6 billion ($2.7 billion).

 


The fallout from Covid-19 began to affect Leonardo in March, as Italy suffered a particularly severe outbreak in the early stages of its spread across Europe. However, the government designated the group’s facilities as having strategic status, allowing them to stay open, albeit with some reduction in productivity.

 


Despite the difficulties, Leonardo managed to increase its order intake by 36 percent during the first three months, with €3.4 billion ($3.5 billion) in new sales. The group’s backlog stands at €37 billion ($38 billion), representing around two-and-a-half years of production.

 


The public company has suspended financial guidance for 2020, based on continued uncertainty in business conditions and outstanding questions about when and how authorities might lift the Covid-19 lockdown restrictions. “We don’t know how much we can make up [for losses] in the rest of this year,” commented Leonardo CEO Alessandro Profumo. “We expect to see a greater [negative] impact in the second quarter, but we are starting to see stabilization and we expect to accelerate in the second half of the year.”

 


Leonardo aims to reduce costs by up to 15 percent this year. It plans to reduce labor costs by 10 percent but did not give details of how any possible workforce reduction. The group will reduce gross investment by 25 percent.

 


According to CFO Alessandra Genco, Covid-19 travel bans led to some delays in deliveries of helicopters and ATR aircraft, mainly because customers could not travel to its factories. Profumo added that the company has yet to see significant supply chain disruption, but it continues to monitor the situation.

 


Revenues from Leonardo’s helicopter business fell by around 5 percent during the first quarter to €704 million ($731 million). The company&nbsp;attributed the results partly to reduced deliveries of its AW139 twin. Leonardo is trying to introduce a so-called “smart delivery” process in which it shares as much information as possible with customers via digital means to reduce the need for them to send staff to the factory.

 


According to Genco, Leonardo’s aerostructures business suffers from a high degree of exposure to reduced output for Airbus and Boeing. She indicated that the activity will result in a loss for 2020.

News and developments about airplanes, helicopters and unmanned air vehicles used in all varieties of operations, including airlines, military, business, commercial, general aviation and private.

Leonardo Sees 2020 Hit from Decline in Civil Aviation Markets

Italy's Leonardo saw first quarter earnings decline, mainly on the civil side of its business, including helicopters, ATR airliners, and aerostructures.

2024 Corporate Aviation Leadership Summit

Latest version of the design was unveiled at the recent China Airshow in Zhuhai

Manta Steps Up Work on Ann6 Hybrid-Electric Aircraft

News and issues relating to business, corporate and private aviation, primarily regarding turbine-engine-powered airplanes and helicopters. Subjects include aircraft, engines, maintenance, operations, personnel, acquisitions, accidents, safety, security, and training.

It can land on unpaved runways and has a massive cargo door; it is the SUV of jets

Flying the Updated Pilatus PC-24 Super Versatile Jet

Matt Thurber

News and issues concerning the aviation charter and fractional-ownership industries and markets, including company announcements, regulations, new developments and labor issues.

Air Bravo purchased the freighter version of the twin-turboprop

Cessna SkyCourier Certified by Transport Canada

Jessica Reed

Pilatus and Piper products make up the majority of sales

Western Aircraft Achieves $2B in Total Aircraft Sales

AmyWilder

News and issues about aviation maintenance, repair and overhaul (MRO), covering all segments of the aviation industry; and modifications for aircraft and engines. Subjects include product support of aircraft, engines and avionics, MRO company mergers, acquisitions, announcements and personnel, Airworthiness Directives, Supplemental Type Certificate approvals and other topics.

News and issues relating to the aerospace industry that are related to the science, engineering and business of flight in space involving civil, industrial and military applications, and similar topics related to flight in the atmosphere of the Earth that are not covered more directly by other AINonline subject channels. In other words, both astronautical and aeronautical subjects, except for those aeronautical topics that are specifically covered elsewhere on this website.

Digital twins transform product development and manufacturing 

Reality's Digital Mirror with Dassault's Virtual Design

People in Aviation - January 2025

People in Aviation

AIN Staff

A sampling of the many eye-catching pictures received  for Photo of the Week

Best of AINalerts Photos of the Week

Kerry Lynch

Essential news and analysis on the defense aerospace business. Your trusted source for new and ongoing programs and requirements in military aircraft (manned and unmanned), engines, avionics, weapons and associated systems, including ground-based air defense.

More In Aircraft

Manta Steps Up Work on Ann6 Hybrid-Electric Aircraft

Latest version of the design was unveiled at the recent China Airshow in Zhuhai

Flying the Updated Pilatus PC-24 Super Versatile Jet

It can land on unpaved runways and has a massive cargo door; it is the SUV of jets

Cessna SkyCourier Certified by Transport Canada

Air Bravo purchased the freighter version of the twin-turboprop

Western Aircraft Achieves $2B in Total Aircraft Sales

Pilatus and Piper products make up the majority of sales

Reality's Digital Mirror with Dassault's Virtual Design

Digital twins transform product development and manufacturing

People in Aviation

People in Aviation - January 2025

Best of AINalerts Photos of the Week

A sampling of the many eye-catching pictures received for Photo of the Week

Turkey's Baykar Receives Italian Nod To Buy Piaggio

Baykar intends to preserve Piaggio’s identity and ‘relaunch’ the company

AIN Products

SUBSCRIPTIONS

RESOURCES

ABOUT AIN