Airbus shows confidence in production amid Boeing crisis

Airbus shows confidence: Amidst a deep corporate crisis at its US rival Boeing, Airbus expressed confidence in its airplane output forecasts at a shareholder meeting in Amsterdam. The France-based company has seen its shares rise by 16 per cent since the start of the year, while Boeing has faced a 29 per cent decline due to issues such as the aftermath of a panel blowout on a 737 MAX 9.

Shareholders at the meeting agreed to a partial renewal of the board and backed a one-euro-per-share special dividend worth almost 800 million euros, in addition to an unchanged regular payout. This move came after Airbus responded to pressure from investors to return some cash by unveiling the proposed special dividend in February.

Analysts believe Airbus is on track to meet its annual delivery target of 800 aircraft, following the confirmation of 142 first-quarter deliveries. However, core single-aisle production is reportedly running below internal planning levels, around 50 a month, necessitating an acceleration to meet a target of 75 a month in 2026.

Airbus CEO Guillaume Faury acknowledged the challenges posed by geopolitical tensions and supply chain issues but reaffirmed the company's goals of reaching 75 single-aisle aircraft per month and lifting A350 output to 10 per month by 2026. Airbus remains committed to investing in digital technology and cybersecurity, including through potential acquisitions, to ensure its continued growth and success in the industry.

(with Reuters inputs)