Airbus Shares Rise Amid Revised Production Plans

   By Mauro Orru 
 

Shares in Airbus SE rose Thursday after the European plane maker told suppliers to prepare for a ramp-up in production as it struck an upbeat tone on the recovery of the aviation industry from the coronavirus pandemic.

At 0735 GMT, Airbus shares traded 6.5% higher at EUR104.00.

The company said it expects the commercial aircraft market to recover to pre-Covid levels between 2023 and 2025, with its popular single-aisle jets leading the charge.

"The aviation sector is beginning to recover from the Covid-19 crisis," Airbus Chief Executive Guillaume Faury said.

"The message to our supplier community provides visibility to the entire industrial ecosystem to secure the necessary capabilities and be ready when market conditions call for it," Mr. Faury added.

Airbus said it would increase production of its A320 family of aircraft to 45 per month in the fourth quarter of 2021, calling on suppliers to prepare for a ramp-up to 64 per month by the second quarter of 2023.

The company is also looking at a rate of 70 planes per month by the first quarter of 2024 and even 75 per month by 2025.

Jefferies analysts said the main surprise in the announcement was the plan for production of the A320 family at 64 per month in the second quarter of 2023. "We forecast 603 A320 deliveries in 2023, implying an average production rate of 52-53/month," Jefferies analysts said.

Airbus also said it expects production of its A220 family of aircraft to increase to around six per month in early 2022, with a projection of 14 by the middle of the decade.

Production of the A350 family is expected to rise to six per month by fall 2022, while output for the A330 family is set to remain at an average production rate of two per month.

Write to Mauro Orru at [e-mail]; @MauroOrru94

(END) Dow Jones Newswires

May 27, 2021 03:57 ET (07:57 GMT)

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