The company sees demand for more than 43,000 passenger and freighter aircraft between 2025 and 2044
Airbus will increase shareholder returns, raising its dividend payout ratio to 30%-50% amid robust aircraft demand.
Airbus said it would increase shareholder returns in the coming years, betting that robust demand for aircraft will continue to fuel growth.
The European plane maker said Wednesday that it was lifting its dividend payout ratio to between 30% and 50% from a current range of 30% to 40%. The company said special dividends and share buybacks remained on the table to return extra cash to shareholders.
The move shows a growing divide between Airbus and Boeing, which suspended dividend payments in March 2020. Airbus’s beleaguered rival has been mired in safety and production issues in recent years and is working to recover from the reputational and financial fallout.
Airbus shares rose more than 3% following the announcement that came during the Paris Air Show. The company bagged several aircraft orders at the annual trade event, underscoring strong demand for planes as airlines continue to expand capacity.
Airbus anticipates global demand for more than 43,000 passenger and freighter aircraft between 2025 and 2044, saying single-aisle planes would account for the bulk of new passenger-aircraft demand over the next two decades.
Excerpt from WSJ
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