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Airbus to expand A320 production as sales rise | Airbus to expand A320 production as sales rise |
(35 minutes later) | |
European aircraft maker Airbus is planning to ramp up production of its A320 following a profitable third quarter earnings. | European aircraft maker Airbus is planning to ramp up production of its A320 following a profitable third quarter earnings. |
Airbus increased revenue by 6% in the third quarter to €14bn (£10bn; $15.4bn) compared with €13.3bn the year before. | |
The company benefited from the strong dollar and growing sales across all its products. | The company benefited from the strong dollar and growing sales across all its products. |
Airbus plans to increase production of its A320 to 60 a month in 2019, from 42 now, capitalising on growing sales. | Airbus plans to increase production of its A320 to 60 a month in 2019, from 42 now, capitalising on growing sales. |
Shares in Airbus rose 4.6% in early trading following the news. | Shares in Airbus rose 4.6% in early trading following the news. |
Operational challenges | |
The company's order intake increased 42% in the first nine months of 2015 compared with a year earlier. Airbus did €100bn in sales of commercial aircraft and €4bn of helicopters sales. | |
The firm also announced a €1bn share buy back to be completed by mid-2016. | The firm also announced a €1bn share buy back to be completed by mid-2016. |
Airbus said the increased production of A320s would help off set some of the issues it has had delivering other aircraft. | |
In a statement, chief executive Tom Enders said "We are strongly focused on programme execution given our key operational challenges with the A350 and A400M ram-ups." | |
Airbus has struggled to keep up with demand for its A350. Both the A350, and the A400M military aircraft, have carbon fibre structures that improve fuel efficiency. |
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