Airbus announced a €5 billion ($5.7 billion) share buyback and set ambitious production targets on July 22 that could secure thousands of manufacturing jobs across Europe, as the planemaker told investors it expects to nearly double core profits by 2029. The company unveiled the plan at the Farnborough Airshow in England, where industry delegates said parts shortages that had threatened production lines were finally easing.
The European aerospace giant is targeting core operating profit of €12 billion to €13 billion in 2029, up from €7.13 billion last year and well above its 2026 target of €7.5 billion. Airbus shares jumped more than 6% in late trading as investors welcomed the forecast, which implies sustained employment growth at major assembly sites in Toulouse, Hamburg, and across the supplier network in Spain and the UK.
Production Ramp-Up and Engine Talks
Airbus aims to increase narrowbody jet production to 70 to 75 aircraft a month in 2027, up from around 60 now. That production increase depends on resolving ongoing talks with engine supplier Pratt & Whitney over 2027 delivery schedules. Airbus Commercial CEO Lars Wagner said the company aimed to decide this year on higher production rates for the A350 widebody, targeting somewhere between the current goal of 12 a month and 20. He also said Airbus was studying a stretched version of the A350 and looking at extending its smaller A220 model.
The company expects its main commercial aircraft business to generate around €10 billion in operating profit in 2029 and maintained its delivery target for 2026. Rolls-Royce CEO Tufan Erginbilgic said on Tuesday that Airbus was in talks with airlines interested in the A350 and added, "We are working with them." Airbus declined to comment on timing after Erginbilgic suggested a decision could come within 12 months.
Leadership and Governance Questions
Airbus CEO Guillaume Faury didn't rule out staying on when his mandate expires in 2028. "I am fully available for the board to do what they think is appropriate for the company and enjoy what I'm doing," he said, adding that he was surrounded by a team of leaders. "It's not about a one-man show. It's still about the team making it happen."
The issue of appointments remains sensitive at Airbus, which adopted market-friendly governance in 2013 after years of Franco-German power-sharing but still pays attention to the balance of nationalities. Sources said Airbus' decision to name longstanding board member Amparo Moraleda of Spain as its next chairperson, rather than making the expected choice of a French candidate to succeed Germany's Rene Obermann, had provided flexibility for Faury to stay on. Airbus tends to avoid having two French or two German people in the top jobs.
Why This Matters:
Airbus' production targets represent more than shareholder returns — they're a signal of stability for tens of thousands of workers across Europe's aerospace supply chain. The planned ramp-up to 75 narrowbody jets a month by 2027 will require sustained hiring at assembly plants and among suppliers, many of them in regions with few alternative employers. But the company's reliance on engine manufacturers and the complexity of its Franco-German governance structure show the limits of corporate planning in an industry where political balance still shapes leadership decisions. If Airbus can deliver on its 2029 profit targets, it'll prove that Europe's largest industrial champion can compete globally while maintaining high-wage manufacturing jobs at home. If supply chain problems return or airline demand softens, those same workers will bear the cost.