Airbus SE will increase production of its single-aisle commercial planes as a result of a recovery for the airline industry.
Shares of the French company rose 9.22% to 106.68 euros each on its local exchange and its shares traded in the U.S. rose 9.2% to $32.52 each after news of the expanded production circulated. The issue is expected to open another 2.7% Friday in the U.S.
The European aerospace company told suppliers to prepare to increase manufacturing of components for its A320 family of jets beyond pre-pandemic levels within two years, UK Aviation reported.
With the world gradually rising from a yearlong health crisis, manufacturers are scrambling to secure materials to feed assembly lines and meet demand.
Airbus said it was looking to increase production of its A320 narrow-body planes to 64 a month by the first half of 2023, exceeding its 2019 average monthly production of 60, according to The Wall Street Journal.
Airbus is currently making 40 planes a month at assembly facilities in Hamburg, Toulouse, Tianjin and Mobile. This should rise to 45 by the final quarter of this year.
Demand for the planes is recovering faster than expected thanks to a rise in local travel in the U.S. and China. Airbus has delivered more jets this year than competitor The Boeing Co. - proof of the stability of its supply chain and production network.
"The aviation sector is beginning to recover from the COVID-19 crisis," The Guardian quoted Guillaume Faury, Airbus chief executive officer, as saying.
Faury said the company's message to its supplier community "provides visibility to the entire industrial ecosystem to secure the necessary capabilities and be ready when market conditions call for it."
The International Air Transport Association expects international passenger numbers to recover to 52% of pre-pandemic levels this year and to top that in two years when more border restrictions are loosened.
Airbus will also increase production of its small, single-aisle A220 from five a month to six by early next year and to 15 a month by 2025.
