Airbus hikes output goals, bets on recovery

Airbus shares jumped as much as 7 percent on Thursday (May 27).

That as it set out sweeping new goals to expand production of jetliners.

The world's largest planemaker is exploring an almost two-fold increase in the output of its best-selling single-aisle jets by the middle of the decade.

Lifting it from current crisis-depressed levels.

Airbus will increase single-aisle A320neo production by more than 10% by the end of this year.

And gave suppliers a firm new target of 64 a month by the second quarter of 2023.

Demand for single-aisle jets is recovering as domestic travel rebounds, particularly in the United States and China.

In anticipation of a continued recovery, Airbus is asking its suppliers to "enable a scenario" where it can produce 70 single-aisle jets a month by 2024.

Long-haul travel on larger planes though is expected to be slower to recover.

Airbus said its wide-bodied A330 family is excluded from the higher production ambitions and will stay at two a month.

Analysts descried the fresh goals as "punchy".

But some of the company's network of 8,000 suppliers were reportedly less optimistic.

The production ramp-up has already led to a stand-off between some suppliers and Airbus.

It's over who should bear the risk of investments needed to lift the industry out of the crisis.

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