Airbus says it can double profit with boost to aircraft output

Airbus SE predicted it can almost double operating profit by 2029 as it overcomes persistent production snags, giving the European planemaker the financial firepower to pursue acquisitions and reward investors with buybacks. The manufacturer aims to generate €12 billion ($13.7 billion) to €13 billion in adjusted annual operating profit in 2029, and Airbus said it will initiate a €5 billion buyback over the course of those next three years, according to a presentation to investors in London on Tuesday. [caption id="attachment_57298393" align="aligncenter" width="2560"] (Courtesy/Airbus)[/caption] The company is emerging from a lengthy period of manufacturing glitches, including troubles with some engines and a shortage of parts, that have held back output. With the bulk of those issues close to being resolved, Airbus said it can exceed its own goals, including a production target for the flagship A350 airliner as it presses its advantage against arch-rival Boeing Co., which still maintains an edge in that category. “We’ve ticked a lot of important boxes when it comes to our ability to supply,” Chief Executive Officer Guillaume Faury told investors at the gathering in London. “The markets we are working in are strong.” While demand remains robust, the supply-chain issues and concern about the fallout from the war in Iran on demand have weighed on the stock, which has barely budged this year. That compares with a 28% gain over the course of 2025. The shares rose as much as 5% in early Paris trading on Wednesday, the most since early May. Faury’s current contract runs until 2028, meaning his yet-to-be chose successor will need to see through the final stretch of the financial goals, or he might extend his mandate. The CEO said at a press meeting in London last night that the decision about his tenure lies with the board. Other goals include a cash conversion target of around 1 over a 5-year horizon. Airbus said its targets assume “no additional disruptions to global trade or the world economy, air traffic, the supply chain, its internal operations, and its ability to deliver products and services,” according to a release issued on Tuesday. “Overall we view the business update messaging as solid, although the message on improved supply chain still needs to translate into meaningful acceleration in production,” said Chloe Lemarie, an analyst at Jefferies in Paris, in a note to investors. The biggest portion of profit contribution will come from the Airbus civil aviation business, which will bring in about €10 billion of the estimated haul by 2029, compared with €5.5 billion last year. Airbus Defense and Space will account for €1.3 billion, with the helicopter subsidiary adding about €1.2 billion, Airbus said. Possible deals The company said it has an ambition of increased market share on widebody aircraft. Airbus will produce the A330 model at a rate of 5 units a month in 2029, and the A350 at 12 units in 2028, it said. The popular A320 family will reach 70 to 75 units in 2027, Airbus said, with the smaller A220 at 13 monthly units in 2028. Lars Wagner, the new head of the Airbus commercial operation, said the company is investigating how it can increase its production rate on widebodies, with the A350 able to go “well beyond” the 12 monthly units targeted by 2028. With the existing final assembly line designed for output of no more than 12 units, Airbus would have to invest in a new line should it decide to go beyond its stated goals. Airbus is also investigating the feasibility of stretching both its A220 and its A350 units, as customers move increasingly to larger aircraft, Wagner said. The company is also willing to commit to “significant” deals to meet its ambitions for higher earnings and sales, Wagner said. Possible areas would be in fields like services, though Airbus said transactions wouldn’t be “transformative” in size. Airbus, which reports earnings on July 29, reiterated its near-term goals, which include about 870 aircraft deliveries this year and adjusted operating profit of about €7.5 billion. Free cash flow will reach about €4.5 billion. Cargo Facts Symposium 2026, the premier event for the freighter aircraft and air cargo industries, will take place in Nashville, Tenn., on Oct. 21-23. Find out more and register by Sept. 4 to take advantage of early-bird pricing.

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