Airbus rallies as investors welcome €5bn buyback, mid-term targets

(Sharecast News) - Airbus shares flew higher on Wednesday after the plane maker announced the launch of a €5bn share buyback and outlined new mid-term targets. The share buyback will be carried out over three years, the company said, and will be subject to continued shareholder approval.

Airbus also said that as part of its mid-term outlook, it is targeting €12bn to €13bn of adjusted earnings before interest and tax in 2029. The company reiterated its cash conversion target of around 1 over a five-year horizon.

Airbus said its outlook assumes no additional disruptions to global trade or the world economy, air traffic, the supply chain, its internal operations, and its ability to deliver products and services.

"The outlook assumes a scenario in which trade regulations and tariffs remain stable and in line with the current baseline, and does not reflect the potential impact of M&A activities," it added.

Chief executive Guillaume Faury said: "As we ramp up across all our businesses, working to meet strong demand for our portfolio of innovative civil and military solutions, our priorities are clear.

"Our trajectory fuels our profitable growth, creating value for our customers, employees, partners and shareholders as we continue to pioneer sustainable aerospace for a safe and united world."

At 1313 BST, the shares were up 6.4% at €207.10.