Airbus’ Innovations in Dividends
Increased Dividend Payout Ratio: Airbus plans to raise the upper limit of the dividend payout ratio from the previous 30-40% to 30-50%. This is intended to promote sustainable dividend growth and appeal more to investors.
Sustainable Growth: The increase in dividends is part of a strategy aimed at long-term sustainable growth. Airbus wants to engage its shareholders more through higher profit distributions.
Challenges in the Commercial Aircraft Business
Goals and Market Conditions
Goals for 2025: Airbus plans to deliver about 820 commercial aircraft in 2025. However, by the end of May, only about 30% of these goals were reached.
Market Conditions: Despite global challenges like conflicts and supply chain issues, Airbus appears cautiously optimistic about achieving its goals. The aviation industry demonstrates its resilience through significant orders.
Financial Forecasts: Adjusted operating profit is expected to be around seven billion euros, and free cash flow before customer financing is expected to reach 4.5 billion euros.
Reactions at the Air Show
Orders and Confidence: Orders at the Paris Air Show could strengthen confidence in the company’s development. Airbus utilizes such events to solidify its market position and reassure investors.
Stock Reaction: Airbus shares rose by 3.8% in early trading following the announcement of increased dividends and confirmed forecasts. This indicates that investors are responding positively to the optimistic outlook.
Overall, Airbus shows that it is a strategy focusing on both dividend growth and addressing challenges in the commercial aircraft sector. The reactions at the Air Show and stock responses are of particular interest to investors.