Airbus shares jump after €5 billion buyback announcement

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Airbus shares jump

Highlights

Airbus launched a €5 billion buyback.
Shares gained more than 7%.
2029 profit could reach €13 billion.

According to Reuters, Airbus shares were on course for their biggest one-day gain since April 8. Investors welcomed the three-year buyback and a forecast for adjusted operating profit of €12 billion to €13 billion in 2029. That would be close to double the €7.13 billion reported last year. It would also be well above the company target of about €7.5 billion for 2026.

Airbus plans higher aircraft output

The commercial aircraft division is expected to generate about €10 billion in operating profit by 2029. Airbus plans to raise monthly production of its A320-family narrowbody jets to between 70 and 75 aircraft in 2027. The company currently produces about 60 aircraft a month.

Management said shortages of engines and other components have started to ease. However, Airbus remains in talks with Pratt & Whitney over engine supplies for 2027. The outcome could affect how quickly production can increase.

Airbus began the year slowly because of supply-chain bottlenecks. Deliveries have since accelerated. First-half aircraft handovers increased 15% from a year earlier.

A350 demand supports expansion plans

Airbus also reported strong demand for its A350 widebody jet. The company is studying a stretched version of the aircraft but has not set a launch timetable.

Rolls-Royce Chief Executive Tufan Erginbilgic said Airbus could make a decision within 12 months. He added that the planemaker was speaking with interested airlines.

Airbus Commercial Chief Executive Lars Wagner said the company plans to decide this year whether to lift A350 production. The current target is 12 aircraft per month, but output could eventually move toward 20. Airbus is also considering a larger version of the smaller A220.

Execution becomes the next test

The targets show that Airbus expects the worst supply disruption to be over. Strong demand and improving deliveries give the company room to raise output and return more cash to shareholders.

The plan still depends on reliable engine supplies and consistent supplier performance. Investors will now watch whether Airbus can move from stronger guidance to sustained production growth without triggering new delays.

At the time of writing, Airbus shares were trading at €206.50, up 6.12% from the previous close.

Earlier, we reported that Boeing challenges the transparency of the EU loan to Airbus.

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