Business World

Friday 26 April 2019

Airbus shares rally after large Chinese order

Airbus CEO Tom Enders
Airbus CEO Tom Enders
Independent.ie Business Desk

Airbus shares rose on Tuesday after the European planemaker won a deal worth tens of billions of dollars to sell 300 aircraft to China.

Airbus was up 1.9pc in early session trading.

French officials said the deal was worth some €30bn at catalogue prices. Planemakers usually grant significant discounts.

The Chinese order was announced late on Monday, coinciding with a visit to Europe by Chinese President Xi Jinping and matching a China record held by US rival Boeing.

Investment bank Citigroup kept a "buy" rating on Airbus.

"We do not have details of the delivery schedule of this order, but China has been taking about 20-25pc of Airbus production per year and given the A320 family is sold out at announced production rates out to 2024/25, we believe this increases the probability of Airbus moving to a production rate of 70 per month," wrote Citigroup.

Reuters

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