Airbus reaffirms jet output goals amid strong demand

AMSTERDAM (Reuters) -Airbus voiced confidence in airplane output forecasts on Wednesday, telling shareholders it hoped to overcome lingering supply challenges at an Amsterdam meeting held against the backdrop of a deep corporate crisis at U.S. rival Boeing.

Shares in the France-based company have risen 16% since the start of the year, while Boeing - dealing with the aftermath of a panel blowout on a 737 MAX 9 - has lost 29%.

Shareholders agreed a partial renewal to the board and backed a one-euro-per-share special dividend worth almost 800 million euros on top of an unchanged regular payout.

Airbus responded to pressure from investors to return some cash by unveiling the proposed special dividend in February, signalling confidence in its commercial-led business despite taking hefty charges at its troubled Space arm.

The world's largest planemaker is seeing orders from airlines recovering from the pandemic, helping it to build cash reserves in contrast with its rival which is in the midst of management upheaval and debts stemming from earlier crises.

Analysts said the planemaker appeared on track to meet its annual delivery target of 800 aircraft after confirming 142 first-quarter deliveries on Tuesday, as reported by Reuters.

But core single-aisle production is running below internal planning levels at around 50 a month, meaning it must accelerate to meet a target of 75 a month in 2026, industry sources said.

Airbus has said it is on the right path to meet the goal.

"We continue to operate in an environment that remains complex ... affected by geopolitical tensions and supply chain challenges," Chief Executive Guillaume Faury said.

However he reaffirmed the 75 a month goal as well as a parallel target to lift A350 output to 10 a month in 2026.

The company faces mounting cost pressures after investing in resources to secure the ramp-up, pushing it above internal cost projections earlier this year, industry sources said.

Other possible warning signs of industrial stress include an increase in the amount of time lost to injuries relative to hours worked in the civil business, bucking a more positive trend in the group. Airbus says eradicating the causes of such problems will be a focus this year.

Officials said Airbus remained committed to investing in digital technology after abandoning talks last month to buy the BDS cybersecurity and big-data business of Atos, prompting France to pledge to protect certain strategic assets.

"We will look we will continue to look for ways to grow in cyber and cybersecurity" including through organic growth and potential acquisitions, Airbus Chairman Rene Obermann said.

He cited a decision last month to buy German IT firm INFODAS for an undisclosed sum.

(Reporting by Tim Hepher; editing by David Evans)