Airbus raised the upper range of its dividend payout target ahead of a business update on Wednesday and confirmed its guidance for 2025 as it looked to reassure investors about its future prospects.
The company, which makes single-aisle jets used by passenger airlines, said it would target sustainable dividend growth and extend the upper end of its dividend payout ratio to 50%, up from a prior payout ratio of between 30 to 40%.
The world’s largest planemaker reaffirmed its commitment to profitable growth and a cash conversion target of around 1 over a 5-year period, a metric that tracks how effectively it turns profit into free cash.
Shares in Airbus were up 2% at 0721GMT.
Airbus’s business update comes as the global aerospace industry gathers at the 2025 Paris Airshow, where manufacturers are showcasing resilience through major aircraft deals despite geopolitical tensions, U.S. tariffs, and ongoing supply chain strains.
The company is facing continued supply chain pressures that have left almost 40 aircraft stranded at its factories without engines, as shortages of powerplants and cabin equipment disrupt deliveries.
However, since early 2025, it has been 40% less disrupted by delayed components coming to its production facilities, the group’s head of operations for the commercial aircraft business Florent Massou said during the business update.
The European planemaker remains “cautiously hopeful” of meeting its 2025 target of 820 deliveries, the CEO of its jetmaking arm said last week.
(Reporting by Gursimran Kaur in Bengaluru, Anna Peverieri and Jesus Calero)
