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Airbus reaffirms jet output goals amid strong demand
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Airbus reaffirms jet output goals amid strong demand
Apr 10, 2024 8:30 AM

AMSTERDAM, April 10 (Reuters) - Airbus voiced

confidence in airplane output forecasts on Wednesday, telling

shareholders it hoped to overcome lingering supply challenges at

an Amsterdam meeting held against the backdrop of a deep

corporate crisis at U.S. rival Boeing ( BA ).

Shares in the France-based company have risen 16% since

the start of the year, while Boeing ( BA ) - dealing with the

aftermath of a panel blowout on a 737 MAX 9 - has lost 29%.

Shareholders agreed a partial renewal to the board and

backed a one-euro-per-share special dividend worth almost 800

million euros on top of an unchanged regular payout.

Airbus responded to pressure from investors to return some

cash by unveiling the proposed special dividend in February,

signalling confidence in its commercial-led business despite

taking hefty charges at its troubled Space arm.

The world's largest planemaker is seeing orders from

airlines recovering from the pandemic, helping it to build cash

reserves in contrast with its rival which is in the midst of

management upheaval and debts stemming from earlier crises.

Analysts said the planemaker appeared on track to meet its

annual delivery target of 800 aircraft after confirming 142

first-quarter deliveries on Tuesday, as reported by Reuters.

But core single-aisle production is running below internal

planning levels at around 50 a month, meaning it must accelerate

to meet a target of 75 a month in 2026, industry sources said.

Airbus has said it is on the right path to meet the goal.

"We continue to operate in an environment that remains

complex ... affected by geopolitical tensions and supply chain

challenges," Chief Executive Guillaume Faury said.

However he reaffirmed the 75 a month goal as well as a

parallel target to lift A350 output to 10 a month in 2026.

The company faces mounting cost pressures after investing in

resources to secure the ramp-up, pushing it above internal cost

projections earlier this year, industry sources said.

Other possible warning signs of industrial stress include an

increase in the amount of time lost to injuries relative to

hours worked in the civil business, bucking a more positive

trend in the group. Airbus says eradicating the causes of such

problems will be a focus this year.

Officials said Airbus remained committed to investing in

digital technology after abandoning talks last month to buy the

BDS cybersecurity and big-data business of Atos,

prompting France to pledge to protect certain strategic assets.

"We will look we will continue to look for ways to grow in

cyber and cybersecurity" including through organic growth and

potential acquisitions, Airbus Chairman Rene Obermann said.

He cited a decision last month to buy German IT firm INFODAS

for an undisclosed sum.

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