Airbus Soars: Ambitious Profit and Share Buyback Plans Unveiled

Airbus has set a target to double its adjusted operating profit to €12-13 billion by 2029, driven by increased aircraft production and overcoming supply-chain challenges. In a show of confidence, a €5 billion share buyback was also announced. Analysts expect significant profit growth in commercial aircraft deliveries.

Airbus has announced an ambitious target to nearly double its adjusted operating profit to €12-13 billion by the year 2029, an announcement made on Tuesday. This bold objective aligns with their strategy to ramp up aircraft production and tackle industry challenges such as supply chain disruptions and engine shortages.

In a bid to reassure stakeholders, Airbus unveiled a €5 billion share buyback program. The commercial aircraft division alone is projected to contribute about €10 billion in operating profit by the target year, indicating a positive outlook despite current hurdles. According to J.P. Morgan analysts, Airbus could achieve its profit goals ahead of schedule within the next three years.

CEO Guillaume Faury expressed confidence in the company's trajectory, pointing to improved visibility and resolved challenges. Despite a slow start to the year, Airbus has accelerated its deliveries, recording a 15% increase in handovers during the first half of the year. Improvements by engine supplier Pratt & Whitney suggest further alleviation of production constraints.