Avionics manufacturers warn about impact of Covid-19 on their businesses

AirMed&Rescue News

US avionics manufacturers have warned about the impacts to their businesses due to Covid-19 in a recent Securities and Exchange Comission filing

Astronics Corp. said in its 10-K report: We are vulnerable to the global economic effects of epidemics and other public health crises, such as the novel strain of Covid-19 virus reported to have surfaced in Wuhan. Due to the recent outbreak, there has been a substantial curtailment of global travel and business activities which could have an impact on airline spending and demand and could negatively impact our sales if conditions worsen or extend for a prolonged period of time. China has also limited the shipment of products in and out of its borders, which could negatively impact our ability to receive products from our China-based suppliers and our ability to ship products to customers in that region. Supply chain disruptions could negatively impact our sales. If not resolved quickly, the impact of the epidemic could have a material adverse effect on our business."

Gogo Inc. said in its 10-K report that Covid-19 has had and will have a negative impact on its business. It said: "If our airline partners continue to experience significantly reduced demand for passenger traffic for an extended period, our 2020 consolidated results of operations and our liquidity and financial condition may be materially adversely affected. The extent to which the outbreak affects our earnings and liquidity will depend in part on our ability to implement various measures intended to reduce expenses.”

Boeing and the Airlines for America trade group have asked for money from the federal government to cushion the impact of the pandemic.