Airbus Group announced a 20% hike in production of its most popular jet and dismissed growing nerves about the health of the jet market as it reported better-than-expected third quarter results, driven by its main plane-making division.
Europe's largest aerospace group said it would raise production of the A320 jet family to a record of 60 airplanes a month in 2019, compared with its previous target of 50 a month in 2018. It currently produces around 42 a month.
Investors and suppliers are increasingly concerned about a glut of aircraft production as Airbus and US rival Boeing wage a vigorous battle for market share, but Airbus said it was confident a strong run in jet demand would continue.
"The healthy commercial aircraft market, robustness of our backlog and supply chain capability allows us to raise the single-aisle production rate to 60 a month in mid-2019," Chief Executive Tom Enders said.
Reuters had reported on Thursday that the company was set to announce an increase in output of its most popular jet, a key source of cash for funding new developments.
The move is expected to put pressure on Boeing to follow suit.
Airbus Group, whose shares have risen 47% this year, also said it would immediately start a previously approved €1bn share buyback, to be completed by mid-2016.
