Airbus ramps up A320 production as profits climb

European aircraft maker Airbus announced yesterday it will ramp up production of its best-selling A320 jet as overall profits climb sharply. Airbus, like its main rival Boeing, is enjoying strong sales in a “healthy” international market for passenger aircraft. In a sign of Airbus’ confidence in its financial position, the group also revealed it is launching a €1.0bn ($1.2bn) buyback of its own shares. Citing a robust commercial aircraft market, Airbus said it was increasing monthly output of the popular single-aisle A320 family to 60 in mid-2019 from just over 42 now. Airbus said group net profit rose 42% from a year earlier to €376mn in the three months to September 30 as it reaped the benefits of strong sales and a firm dollar. The Toulouse, France-based group said sales rose 6% to €14.1bn in the three months. The figure is still substantially less than the $25.85bn in sales reported by Boeing in the same period. The Airbus production target eclipses that of Boeing, which aims to raise monthly output of its single-aisle 737 from 42 now to 52 in 2017. The news came a day after state-owned China Aviation Supplies Holding Group signed a deal to buy 100 A320 aircraft, worth $9.7bn at list prices. Airbus has also signed a letter of intent in a €750mn deal to sell to China 100 of its versatile H135 twin-engined helicopters, often used by emergency services, a source close to the matter said yesterday. The firm dubbed the accord, under which it will open a facility in the eastern city of Qingdao to assemble the helicopters, a “major step forward for Airbus Helicopters in China,” one which “consolidates its position as the leading helicopter manufacturer in the Chinese market.”  “We again increased revenues, profitability and cash generation due to a good operational performance,” chief executive Tom Enders said in a statement. Airbus’ board had decided to start the one billion euro share buyback immediately, he said, prompted by progress in the business, divestments and the company’s cash position.