Airbus kept a target of delivering 720 aircraft after missing it last year.
Charly Triballeau/AFP/Getty Images
Airbus
is ramping up production of two of its most popular airplane models, putting pressure on U.S. rival
Boeing
as international air travel continues to recover from the Covid-19 pandemic.
Airbus (ticker: AIR.France) said it would be making nine of its wide-body A350 model airplanes a month by 2025, up from six currently. It will start making four of its smaller A330neo jets each month starting in 2024, up from three now.
Shares of the European company climbed 2.8% to €122.40 ($130.90) in early Paris trading on Thursday. Airbus also reported a 1% increase in earnings and said it would raise its dividend by 20%.
Airbus failed to hit its target of delivering 720 aircraft in 2022, managing just 661. It kept the same target of 720 for this year.Â
Boeing (BA) also fell short of its goals last year as supply-chain troubles slowed production. The U.S.-firm delivered 480 jets, compared with a target of 700.
Both companies got a boost this week as Air India announced a deal to buy 470 jets, a record commercial order from any single airline. The provisional agreements are for 220 planes from Boeing and 250 from Airbus over the coming years.
Airbus shares have gained 10% this year. Boeing has advanced 14%.
Write to Brian Swint at brian.swint@barrons.com
Credit: marketwatch.com