Airbus shares surged more than 6% in late trading on July 22 after the European planemaker announced a €5 billion ($5.7 billion) share buyback and unveiled ambitious mid-term targets that include nearly doubling profits by 2029. The announcement came at the Farnborough Airshow in Farnborough, England, where industry delegates reported that parts shortages are finally easing.
Ambitious Growth Targets
The company is targeting core 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 plans to increase narrowbody jet production to 70 to 75 aircraft a month in 2027 from around 60 now, though it remains in talks over 2027 engine supplies from Pratt & Whitney. The production ramp-up represents a significant bet on sustained demand for commercial aircraft, but it also exposes the company to supply chain risks that have plagued the industry for years.
Airbus Commercial CEO Lars Wagner said the company aimed to decide this year on higher production for the A350, landing 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 stretching its smaller A220. The company expects its main commercial aircraft business to generate around €10 billion in operating profit in 2029 and maintained a delivery target for 2026.
Engine Supply Questions
Rolls-Royce CEO Tufan Erginbilgic said on Tuesday that Airbus was talking to airlines that were interested in the A350 and said, "We are working with them." Airbus declined to comment on the timing after Erginbilgic said Airbus could decide within 12 months. The engine supply question remains critical for Airbus' production plans, particularly as Pratt & Whitney continues to work through quality issues that have grounded dozens of aircraft.
Leadership and Governance
Guillaume Faury didn't rule out staying on as CEO when his mandate expires in 2028. He said, "I am fully available for the board to do what they think is appropriate for the company and enjoy what I'm doing," and added 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," he said.
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' aggressive growth targets and €5 billion buyback signal confidence in European aerospace at a time when the continent desperately needs competitive industrial champions. The company's ability to double profits by 2029 depends on resolving supply chain bottlenecks and securing engine supplies — risks that could derail production plans. For European competitiveness, Airbus remains a rare success story in high-tech manufacturing, but its reliance on complex international supply chains exposes it to disruptions beyond management's control. The leadership question also matters: Airbus' 2013 governance reforms moved it away from Franco-German political horse-trading toward market discipline, and maintaining that balance while navigating national sensitivities will be critical to keeping the company focused on shareholder value rather than political symbolism.