Airbus shares surge on $5.7B buyback, stronger 2029 profit outlook

Airbus (EADSF)(EADSY) shares climbed more than 7% after the aircraft manufacturer unveiled a €5 billion ($5.7 billion) share buyback and raised its medium-term financial targets, signaling growing confidence that supply chain disruptions are easing.

For investors, the announcement combines a sizable capital return program with ambitious earnings growth. Airbus is targeting core operating profit of €12 billion to €13 billion by 2029, nearly double last year's €7.13 billion and well above its 2026 goal of €7.5 billion.

The company said it has greater visibility into its supply chain than at any point in recent years, supporting plans to increase production of its A320-family narrowbody jets to 70-75 aircraft per month in 2027 from about 60 currently. Airbus added that discussions with engine supplier Pratt & Whitney (RTX) over 2027 deliveries are continuing.

Airbus also reaffirmed strong demand for its A350 widebody jet and said it expects to decide this year whether to raise production beyond its current target of 12 aircraft per month. The company continues to evaluate a stretched version of the A350 and is also studying a larger variant of the A220.

The commercial aircraft division is expected to generate about €10 billion in operating profit by 2029. While some analysts described the long-term targets as conservative, others viewed the buyback as a positive catalyst for shareholders.