Aircraft manufacturer Airbus is surging 9 percent on the Paris Stock Exchange after the company announced production increases. It is seen as an important signal for the entire aviation sector, which is lifting European stock markets.
Airbus announced on Thursday that the company will increase production of A320 models from the current rate of 40 aircraft per month to 45 planes per month by the end of the year, writes Barron's. The company also urged suppliers to prepare for an increase to a production rate of 64 aircraft in the second quarter of 2023, with the potential to increase the rate further in the years after that.
The new targets are seen as a strong signal that the aviation sector will recover from the Covid-19 crisis, and the analysis house Jefferies, among others, describes the announcement of 64 planes per month in 2023 as "surprising", notes Barron's.
Following the news, Airbus is by far the best-performing stock on the Paris Stock Exchange's large-cap list on Wednesday, up just over 9 percent. The stock has now risen 19 percent so far this year, but is still trading at levels that are clearly lower than before the pandemic.
The positive signals are also pulling in several European airlines. Air France-KLM is up 2.2 percent, German Lufthansa is up 1.5 percent and the owner of British Airways is up 0.5 percent.
