June 18 (Reuters) - Airbus raised the upper

range of its dividend payout target ahead of a business update

on Wednesday and confirmed its guidance for 2025 as it looked to

reassure investors about its future prospects.

The company, which makes single-aisle jets used by passenger

airlines, said it would target sustainable dividend growth and

extend the upper end of its dividend payout ratio to 50%, up

from a prior payout ratio of between 30 to 40%.

The world's largest planemaker reaffirmed its commitment to

profitable growth and a cash conversion target of around 1 over

a 5-year period, a metric that tracks how effectively it turns

profit into free cash.

Shares in Airbus were up 2% at 0721GMT.

Airbus's business update comes as the global aerospace

industry gathers at the 2025 Paris Airshow, where manufacturers

are showcasing resilience through major aircraft deals despite

geopolitical tensions, U.S. tariffs, and ongoing supply chain

strains.

The company is facing continued supply chain pressures that

have left almost 40 aircraft stranded at its factories without

engines, as shortages of powerplants and cabin equipment disrupt

deliveries.

However, since early 2025, it has been 40% less

disrupted by delayed components coming to its production

facilities, the group's head of operations for the commercial

aircraft business Florent Massou said during the business

update.

The European planemaker remains "

cautiously hopeful

" of meeting its 2025 target of 820 deliveries, the CEO of

its jetmaking arm said last week.