Airbus ramps up A320 output as profits climb

PARIS: European aircraft maker Airbus announced on Friday it will ramp up production of its best-selling A320 jet as overall profits climb sharply.

Airbus also revealed it is launching a one-billion-euro (US$1.2 billion) buyback of its own shares.

Citing a “healthy” commercial aircraft market, Airbus said it was increasing output of the popular single-aisle A320 family to 60 a month in mid-2019, up from just over 42 a month now.

The announcement came just a day after state-owned China Aviation Supplies Holding Group signed a deal to buy 100 A320 aircraft, worth US$9.7 billion at list prices.

Airbus said net profit rose 42% from a year earlier to 376 million euros in the three months to Sept 30 as it reaped the benefit of strong sales and a firm dollar. Sales rose 6% to 14.1 billion euros over the period.

“We again increased revenues, profitability and cash generation due to a good operational performance. We’re on track to deliver on our full year guidance,” chief executive Tom Enders said in a statement.

The Airbus board had decided to start the one-billion-euro share buyback immediately, he said, prompted by progress in the business, divestments and the company’s cash position.

The share buyback should be complete by June 30 next year, Enders said.

New airplane orders over the first nine months of the year soared 42% to 112 billion euros, the group said. - AFP