Battered by the coronavirus pandemic, Airbus announced last month that it must eliminate 15,000 jobs, or more than 10% of its global workforce, to safeguard its future and warned of more thin years ahead.
The contraction, triggered by one of Europe's strictest coronavirus lockdowns, was worse than the 16.6% expected by analysts. It came after a 5.2% drop in the first quarter, dragging Spain into its steepest recession ever, at a record pace.
World stock markets ended the week on a low note on Friday in the face of almost unremitting bad news of rapidly-shrinking economic activity, highlighting the “devastating impact” coronavirus has had on the global economy, analysts said.
Hotel bookings have fallen by as much as 40% in some areas of Spain, the country’s hotel federation said and flagged an overwhelming impact for the eurozone’s fourth largest economy as anxiety about the coronavirus outbreak takes hold.
Airbus is stopping production and assembly activities at its plants in France and Spain for the next four days as governments there implement new measures to restrict movements and fight the coronavirus outbreak, the planemaker said on Tuesday.
The coronavirus crisis has pulverised Spain’s economy, triggering its worst recession since the civil war, with collapsed tourism numbers boding ill for hopes of a swift rebound.
The pan-European STOXX 600 index rose 2.7% at 0716 GMT - hitting its highest in almost a month, with governors of several hard-hit U.S. states pointing to tentative signs the outbreak might be starting to plateau.
The jobless rate was up from 13.8 per cent in the previous quarter, its lowest level since the third quarter of 2008 but still the highest rate in the eurozone after Greece.
The British aero-engine maker jumped 15.4% after losing more than half its value this year, as it secured an extra 1.5 billion pounds ($1.8 billion) in reserves, even though it suspended its dividend for the first time since 1987.
Some 898,822 workers lost their jobs since March 12 in Spain, social security data showed on Thursday, more than half of which are temporary workers. The number of people officially registered as unemployed in the country rose to 3.5 million in March, the highest level since April 2017.