Airbus Sets Loftier Dividend Payout Target Amid Economic Challenges

Airbus has raised its dividend payout target, promising sustainable growth, and confirmed its 2025 guidance ahead of a business update. The world's largest planemaker aims for a payout ratio of up to 50% and profitable growth amidst industry challenges, including geopolitical tensions and supply chain issues.

Airbus has increased the upper range of its dividend payout target as the company prepares for a key business update. This move aims to reassure investors about its positive future outlook and sustainable growth strategy.

The aerospace giant is now targeting a payout ratio of up to 50%, compared to the previous range of 30% to 40%. This shift underscores Airbus's commitment to profitable growth and effective cash conversion over a five-year period.

The announcement coincides with the 2025 Paris Airshow, a major industry event at which manufacturers, including Airbus, demonstrate resilience against economic pressures like geopolitical tensions, tariffs, and supply chain disruptions.

(With inputs from agencies.)