New Airbus Strategy Includes A220/A350 Stretch

Airbus’ strategy update to double Adjusted EBIT to €10 billion in 2029 assumes the launch of the stretched versions of the A220 and A350. No launch decision has been made, but top management gave the clearest indication so far that the A220-500 and A350-2000 will be coming sooner rather than later.

Airbus updated investors and analysts on the revised strategy on Tuesday afternoon in London. The Group intends to grow Adjusted EBIT for all business units to between €12 and €13 billion in 2029, up from last year’s €7.1 billion. Commercial Aviation has the biggest task to grow from €5.5 to €10 billion, with Services getting a target to boost annual revenues to €10 billion. Defense and Space to €1.3 billion, and Helicopters to €1.2 billion. Free cash flow must improve to a cash conversion ratio of around 1. Airbus

will also launch a three-year €5.0 billion share buyback program.

CFO Thomas Töpfer explained that the revised target requires that production of all programs will run at their maximum planned capacity. This means that the A320neo family should have reached a rate of 75/month, which is planned from late 2027. With 70 percent of the program now leaning onto the A321neo, this version and sub-versions like the A321XLR and LR will contribute to a higher revenue mix. The A220 will have to be at 13 a month in 2028, the A330neo at five in 2029, and the A350 at a rate of 12 in 2028.